U.S. Keeps Tariff Threat On Brazil as Rubio Corresponds With Flávio Bolsonaro

Overview

• The Office of the U.S. Trade Representative concluded a probe that recommended steep tariffs on Brazilian goods with commonly reported levels around 25 percent and scheduled a public hearing for July 6.
• U.S. Secretary of State Marco Rubio sent a letter dated June 23 that reaffirmed Washington’s commercial criticisms, declined to withdraw the tariff proposal and noted Flávio Bolsonaro’s offer to provide a ‘transition team’ if elected.
• Brazil’s Planalto has declined to send officials to the USTR public consultation and is instead pressing bilateral negotiations through a working group that officials expect to meet again before July 15.
• The Polícia Federal on June 26 concluded that Senator Flávio Bolsonaro committed the crime of calúnia against President Lula and forwarded the file to the Supreme Federal Court for the Prosecutor‑General to consider indictment.
• The episode has intensified domestic party and family tensions around Flávio’s presidential bid and risks concrete harm to export sectors and jobs if tariffs are imposed, making swift diplomatic technical talks the key near‑term development.