Overview

• The 50% duty on all Brazilian imports takes effect August 1 and represents the steepest levy in Washington’s latest tariff offensive.
• President Trump has directed Trade Representative James Greer to launch a formal Section 301 probe into alleged unfair practices by Brazil.
• The Brazilian real fell over 2% against the dollar after the announcement, underscoring market fears of escalating bilateral trade tensions.
• President Lula has convened his cabinet and a special business committee to seek negotiations with U.S. officials before deploying countermeasures.
• Brazil has signaled it will activate its Reciprocity Law to match any U.S. tariffs if talks do not reverse the 50% levy.