Economy & Trade
Brazil condemns new US tariff on some imports
The United States has announced a 25 percent tariff on various imports from Brazil, drawing a sharp response from Brasilia after Washington accused Brazil of unfair trade practices and policies. The tariff was announced on Wednesday and is due to take effect on July 22, three months before Brazil's presidential election.
Washington imposed the measure after a year-long investigation into Brazilian policies that it says harm US commerce. Brazil has strongly denied the accusation. A senior US official said several products, including beef, coffee and some aircraft parts, would be exempt, along with some goods not produced in the United States.
The office of US Trade Representative Jamieson Greer said Brazil's policies were unreasonable, unfairly helped Brazilian producers and restricted access to one of the world's top export markets. Brazil condemned the tariffs on Thursday and promised reciprocal measures.
President Luiz Inacio Lula da Silva's office said there was no justification for unilateral action against Brazil. It said that in 2025, 76 percent of imports from the United States entered Brazil without import duties.
US Secretary of State Marco Rubio said Brazil's government had not negotiated in good faith and accused Lula of putting his own ego ahead of a deal. Brazilian Foreign Minister Mauro Vieira rejected the remarks, calling them crude and arrogant.
The US National Coffee Association welcomed the exemption for coffee. A coalition representing American small businesses, We Pay the Tariffs, said companies buying everyday products from Brazil would face new costs because of disputes over digital payment rules and other policies.
The tariff dispute has also become part of Brazil's election campaign. Lula's main rival is Flavio Bolsonaro, the son of former president Jair Bolsonaro, who is serving a 27-year sentence for attempting a coup d'etat. Donald Trump imposed tariffs on Brazil last year over the trial of his ally Jair Bolsonaro, although many of those duties were later lifted after talks and amid rising costs for US households.
Jair Bolsonaro's sons supported those earlier tariffs during their father's trial, but Flavio Bolsonaro urged Washington not to impose the new duties, arguing that they could strengthen Lula's campaign. The 44-year-old senator has fallen in polls after a financial scandal and a public feud with his stepmother.
The new tariff comes as Trump's administration tries to rebuild its economic agenda after the US Supreme Court in February struck down a swath of his global duties. The Brazil measure was justified under Section 301 of the Trade Act, which the Trump administration has also used this year to start other trade investigations.
US officials have proposed new tariffs on dozens of trading partners over what they describe as failures to act against forced labor. In Brazil's case, Washington also argues that illegal deforestation makes it harder for the US logging industry to compete globally. Brazilian data cited in the source shows Amazon deforestation fell last year to its lowest level since 2019.
The United States also says Brazil's free PIX electronic payment system, the country's dominant payment method, disadvantages US credit card companies. Greer said the United States remained open to negotiations, but a US official warned that pushback could lead to further US countermeasures.
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 extent and timing of any Brazilian reciprocal measures are not specified.
The source says a US official warned of possible further countermeasures but does not specify what they would be.
Source
AFP news report published on .