Economy & Trade
Brazil says it will seek other markets after new US tariff
Brazilian President Luiz Inacio Lula da Silva said Brazil will seek other markets after a new 25 percent United States tariff on some Brazilian products took effect on Wednesday.
The levy followed US accusations that Brazil used unfair trade practices. Brazil says those accusations are untrue and unfair.
Lula made the comments while announcing a new credit scheme for sectors affected by the surcharge. Under the plan, the government will provide about $3.7 billion in credit to affected companies to help them diversify their markets.
Lula had earlier threatened to impose a reciprocal tariff on the United States, but Vice President Geraldo Alckmin ruled out retaliation on Tuesday. Lula said on Wednesday that Brazil would remain open to negotiations, while saying the United States did not want to negotiate.
The tariff has also become an issue in Brazil's presidential election, which is due in October. Lula will face right-wing senator Flavio Bolsonaro, the son of former president Jair Bolsonaro. The source described Jair Bolsonaro as a Trump ally who is serving time after being convicted of attempting a coup.
Some products, including beef, coffee and aircraft parts, will be exempt from the US levy. Valentina Sader of the Atlantic Council estimated that about half of Brazil's exports to the United States would remain outside the duty.
The American Chamber of Commerce for Brazil recently warned that the US measure affects more than $11 billion in exports. It said vulnerable sectors include machinery, footwear, wood and plastics.
Update
Brazilian President Luiz Inacio Lula da Silva said Brazil will seek other markets after the new US tariff.
Lula announced a credit scheme of about $3.7 billion for affected companies to help them diversify markets.
Vice President Geraldo Alckmin ruled out retaliation against the United States.
The American Chamber of Commerce for Brazil warned that the US measure affects more than $11 billion in exports.
The source identified machinery, footwear, wood and plastics as vulnerable sectors.
Source note: AFP news report published on 22 July 2026 at 22:32:27 UTC.
Update
The 25 percent US tariff targeting Brazil took effect on Wednesday.
Brazilian Vice President Geraldo Alckmin said Brazil would seek negotiations rather than retaliation.
Products including beef, coffee and aircraft parts are exempted, and Valentina Sader of the Atlantic Council estimated that about half of Brazil's exports to the United States would remain excluded from the duty.
The American Chamber of Commerce for Brazil warned that the measure affects more than $11 billion in exports.
Trump announced a 100 percent tariff on generic drugs from August 2028 and ordered a 50 percent duty on many Canadian goods to take effect in 30 days.
US officials have proposed tariffs of 10 percent to 12.5 percent on 60 trading partners over alleged failures to act against forced labor.
Source note: AFP news report published on 22 July 2026 at 04:03:03 UTC.
Update
A senior US official said beef, coffee, some aircraft parts and goods not produced in the United States would be exempted from the tariff.
US Secretary of State Marco Rubio accused Brazil of not negotiating in good faith, and Brazilian Foreign Minister Mauro Vieira called Rubio's remarks crude and arrogant.
Brazilian President Luiz Inacio Lula da Silva's office said 76 percent of US-origin imports entered Brazil duty-free in 2025.
The US National Coffee Association welcomed the coffee exemption, while a US small-business group warned companies would face higher import costs.
The source describes the tariff as a campaign issue before Brazil's October presidential election.
Flavio Bolsonaro urged Washington not to impose the new duties, saying they could help Lula's campaign.
The source says the tariff was justified under Section 301 of the Trade Act and follows a US Supreme Court ruling that struck down a swath of Trump's global duties.
Washington cited Brazilian deforestation and the PIX electronic payment system among the issues it says harm US commerce.
US Trade Representative Jamieson Greer said the United States remained open to talks, while a US official warned pushback could bring further countermeasures.
Source note: AFP news report published on 16 July 2026 at 19:48:29 UTC.
Update
A senior US official said beef, coffee, certain aircraft parts and some goods the United States does not produce would be exempted from the tariff.
Brazil said on 16 July that reciprocal measures would be taken.
President Luiz Inacio Lula da Silva's office said 76 percent of imports from the United States entered Brazil without import duties in 2025.
US Secretary of State Marco Rubio said Brazil had not negotiated with the United States in good faith and criticised Lula.
The US National Coffee Association praised the coffee exemption, while the We Pay the Tariffs coalition warned small businesses would bear higher import costs.
The source adds Brazilian election context involving Lula, Flavio Bolsonaro and Jair Bolsonaro.
The tariff was justified under Section 301 of the Trade Act.
Washington argued illegal deforestation and Brazil's PIX electronic payment system were among policies harming US interests.
Brazilian data cited in the source showed Amazon deforestation fell last year to its lowest point since 2019.
A US official warned that pushback could invite further US countermeasures.
Source note: AFP news report published on 16 July 2026 at 15:50:08 UTC.
Update
Brazil condemned the new tariff and said reciprocal measures would be taken.
President Luiz Inacio Lula da Silva's office said there was no justification for unilateral measures against Brazil.
Lula's office said 76 percent of imports from the United States entered Brazil without import duties in 2025.
US Trade Representative Jamieson Greer said Brazil's policies had hurt US commerce and restricted access to a major export market.
US Secretary of State Marco Rubio said Brazil had not negotiated with the United States in good faith.
The tariff issue has become a campaign flashpoint before Brazil's October presidential election.
The source says Flavio Bolsonaro, Lula's main rival and the son of Jair Bolsonaro, urged the United States not to impose the new tariffs.
The US justified the tariffs under Section 301 of the Trade Act.
Washington cited illegal deforestation and Brazil's PIX payment system among the issues behind the tariff action.
The Trump administration said it did not expect retaliation but warned that pushback could lead to further US countermeasures.
Source note: AFP news report published on 16 July 2026 at 13:28:09 UTC.
Uncertainty notes
The source presents the amount of affected exports cited by the American Chamber of Commerce for Brazil as a warning, not an independently verified final figure.
The estimate that roughly half of Brazil's exports to the United States would remain excluded from the duty is attributed to Valentina Sader of the Atlantic Council.
Source
AFP news report published on .