The Trump administration proposed a 25% tariff on Brazilian goods after a Section 301 investigation, escalating trade tensions with Brasília.
The Trump administration has proposed a 25% tariff on Brazilian goods, saying a U.S. trade investigation found that Brazil engaged in practices that burden American commerce.
The Office of the United States Trade Representative proposed the duties under Section 301, a trade-law tool that allows the president to impose tariffs after findings of unfair or discriminatory foreign practices. U.S. Trade Representative Jamieson Greer said the investigation was launched at President Donald Trump’s direction.
The proposed action marks another attempt by the administration to rebuild its tariff agenda through Section 301 investigations. It also raises the stakes in U.S.-Brazil trade relations at a moment when Washington says talks with Brasília have not resolved key disputes.
The USTR determined that Brazil’s practices “are unreasonable and burden or restrict U.S. commerce.” The office cited issues including anti-corruption enforcement, intellectual property protection, access to Brazil’s ethanol market and illegal deforestation.
Greer said Trump has held “several constructive meetings” with Brazilian President Luiz Inácio Lula da Silva, but that the two governments still have substantial differences over the issues identified in the investigation.
The proposed tariffs are not the first major trade action Trump has aimed at Brazil. In July 2025, Brazil was hit with a 50% tariff, partly in retaliation for the prosecution of former President Jair Bolsonaro. Those duties were struck down by the U.S. Supreme Court in February, leaving Washington able to apply only a 10% global tariff on exports to the United States.
Separately, the White House announced tariff adjustments for certain steel, aluminum and copper imports. Levies on agricultural equipment, including combines and harvesters, will be reduced to 15% from 25%, and the range of equipment eligible for that rate will be expanded. Capital equipment made with at least 85% U.S. steel and aluminum by weight will qualify for a 10% duty rate, down from a current 95% threshold.
The USTR is scheduled to hold a hearing on the Brazil tariff proposal on July 6, leaving the final scope and timing of any new duties to be decided after the next stage of the process.
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