U.S. Proposes 25% Tariff on Wide Range of Brazilian Goods

Overview

• The U.S. Trade Representative published a final Section 301 report on June 1–2 proposing a 25% tariff on many Brazilian exports after finding certain Brazilian acts, policies and practices to be “unjust or discriminatory.”
• The inquiry covered six areas including digital commerce and court orders affecting U.S. platforms, the Pix instant‑payments system, preferential tariff treatment for other countries, intellectual property enforcement, ethanol market access and illegal deforestation.
• The tariff proposal includes a 73‑page exceptions list of roughly 700 products that would be exempted, naming strategic items such as meat, fruit, coffee, aircraft parts and rare earths.
• Brazil has formally rejected the findings, approved an official rebuttal with presidential sign‑off, convened emergency ministerial meetings and said it will seek talks, legal remedies and alternative trade responses including diversification toward China.
• The USTR set a public comment deadline of July 1, a public hearing in early July and a procedural window that could lead to a final U.S. decision around July 15, while a separate forced‑labor probe could add roughly 10–12.5% tariffs affecting Brazil and about 60 other countries.