U.S. slaps 25% tariff on most Brazilian goods over ‘unfair trade practices

The U.S. has levied 25% tariffs on most imports from Brazil effective next week, concluding a yearlong investigation into what Washington calls unfair trade practices, and reigniting tensions with the Latin American nation after negotiation fell apart.

The action, taken under Section 301 of the Trade Act of 1974, targets Brazilian practices, such as orders directing American technology firms — including X, Meta, and Google — to remove certain political content and suspend accounts belonging to U.S. residents, preferential tariffs for Mexico and India, weak intellectual property enforcement, and ethanol market barriers.

The 25% levy, set to take effect on July 22, will apply to most imports from Brazil, with exemptions for certain goods such as beef, orange juice, aircraft and parts, and energy products.

Brazil’s President Luiz Inacio Lula da Silva in a statement posted on X rejected the tariff decision as groundless, and vowed to initiate countermeasures while raise the issue within the framework of the WTO dispute settlement mechanism.

There was “no justification for unilateral measures,” given that Washington has run a cumulative $424.5 billion goods and services surplus with Brazil over 15 years, the president said, citing U.S. government data. The U.S. goods trade surplus with Brazil was $14.4 billion last year, more than doubled from the year prior.