U.S. Imposes 12.5% Tariff on Brazilian Goods, Pushing Possible Levies to 37.5%

Overview

• The U.S. Trade Representative announced a 12.5% tariff that entered into force this week and applies to selected Brazilian products the USTR says are linked to forced‑labour risks.
• That 12.5% measure stacks with a 25% surcharge announced days earlier, creating combined extra duties up to 37.5% for some items and raising costs for exporters and U.S. buyers.
• Brasília responded by activating the Reciprocity Law, opening financial support lines for affected firms and preparing a World Trade Organization complaint while continuing diplomatic talks with Washington.
• Brazilian government allies have launched coordinated messaging blaming the opposition for the tariff moves, and Senator Flávio Bolsonaro travelled to the U.S. and asked the USTR to postpone action until after October’s elections.
• Separately, a federal court in Paraná annulled a Lava Jato indictment against six defendants because it relied on evidence from Odebrecht systems (Drousys and My Web Day) that the Supreme Court had ruled unusable; prosecutors may appeal and can refile if new lawful evidence appears.