The Trump administration's unexpected 25% tariff on Brazilian goods has reopened wounds between the US and Brazil, with political overtones complicating an already fraught trade relationship. Despite broad exemptions and recent high-level meetings, the move signals that the US will pursue aggressive trade enforcement under Section 301, with several other countries in the firing line.
The Trump administration announced a new punitive tariff of 25% on numerous Brazilian imports on Monday, 1 June 2026, citing unfair trade practices spanning digital commerce, intellectual property rights, and environmental protection.
US Trade Representative (USTR) Jamieson Greer confirmed the measures under Section 301 of the Trade Act, targeting sectors including electronic payments, preferential tariff schemes, ethanol access, and deforestation enforcement.
The tariff proposal exempts key Brazilian exports—beef, coffee, rare earth metals, crude oil, pharmaceuticals, and aircraft parts—among others. The measure remains subject to public feedback through 1 July, with a hearing scheduled for 6 July and a final decision due by 15 July 2026.
Political tensions rise over trade action
Brazilian President Luiz Inácio Lula da Silva fired back swiftly, accusing US Secretary of State Marco Rubio of holding anti-Latin American views. Lula noted that trade negotiators from both nations have met three times recently without reaching agreement. He also highlighted the awkward timing, pointing out that while the U.S. moves toward tariffs, China announced Brazil free of foot-and-mouth disease.
A replacement for previous failed duties
The proposed 25% tariff effectively replaces a 50% duty imposed last year, which the US Supreme Court invalidated in February. That earlier tariff had targeted Brazil’s prosecution of former President Bolsonaro.
The new Section 301 investigation, launched to address what Greer calls “longstanding and pervasive” Brazilian trade concerns, reflects the administration’s broader reliance on the same statute used to target Chinese goods during Trump’s first term.
Greer dismissed suggestions that the action is purely political, describing it as “quite nuanced” given its broad exemptions.
The Brazil action represents just one element of the administration’s expansive trade review. Additional Section 301 investigations are expected to yield new tariffs on numerous trading partners, including probes into Chinese industrial overcapacity, forced labour enforcement across 60 nations, and Vietnam’s intellectual property practices.
