US Launches New Tariff Strategy With Brazil

The United States will impose a 25% tariff on most imports from Brazil starting 22 July, marking the first step in the Trump administration's new tariff strategy, which could eventually expand to dozens of other countries.

The new policy is based on investigations into alleged unfair trade practices under Section 301 of the US Trade Act. The Office of the US Trade Representative has already opened nearly 80 investigations, with additional tariffs potentially affecting China, the EU, India, Japan, South Korea and Mexico.

US Trade Representative Jamieson Greer said extensive negotiations with Brazil had failed to resolve the disputed issues, but added that Washington remains willing to continue talks.

Brazilian President Luiz Inácio Lula da Silva called the decision unjustified. He said Brazil would respond under its reciprocity law and file a complaint through the World Trade Organization's dispute settlement mechanism.

The tariffs will apply to thousands of products, including sugar, agricultural machinery, clothing, electrical equipment, paper and steel. Exemptions will cover products such as beef, coffee, rare earth minerals, energy products, aircraft and aircraft parts, organic honey, pig iron and certain types of instant coffee.

Brazil is also the subject of a separate US trade investigation that could result in an additional 12.5% tariff. If imposed, the combined tariff rate on affected Brazilian goods would rise to 37.5%.

(Reuters, bak)