Overview
- The Office of the U.S. Trade Representative recommended a general 25% tariff on many Brazilian goods under Section 301, while exempting key items such as some agricultural products and aircraft parts; the agency set a public hearing for July 6 and an administrative negotiation window that runs through July 15.
- The USTR report cites specific Brazilian policies as the basis for the move, naming rules and enforcement on digital trade and payments (including PIX), intellectual property, ethanol market access, anticorruption enforcement, and illegal deforestation.
- President Luiz Inácio Lula da Silva sharply rejected the proposal and publicly blamed opposition senator Flávio Bolsonaro for promoting U.S. action and singled out U.S. Secretary of State Marco Rubio; Flávio Bolsonaro denies the charge and says he asked U.S. officials not to impose tariffs.
- Brazil's presidency warned it reserves the right to respond using its Reciprocity Law, and Lula said Brazil may seek other trading partners if the tariffs are enacted, a step that could directly affect Brazilian exporters, workers and sector supply chains.
- The proposal is not final and remains subject to negotiation during the July process, but it revives a pattern of volatile U.S.-Brazil trade moves — including last year's 50% tariffs that were later eased — and could reshape commercial ties and campaign dynamics in Brazil ahead of the October vote.