Overview
- The U.S. Trade Representative issued a recommendation in early June for a 25% tariff on certain Brazilian products and the U.S. government is expected to make a final decision by July 15.
- Three major business organizations — Brazil’s CNI, AmCham Brasil and the U.S. Chamber of Commerce — sent a joint letter proposing an urgent, two‑phase negotiation plan to avoid tariffs and boost regulatory cooperation.
- Brazil’s Ministry of Foreign Affairs said it remains committed to dialogue with U.S. authorities and welcomed the private sector’s proposals as part of ongoing talks that have lasted about a year.
- The CNI estimates roughly 4,200 product lines, representing about US$15 billion in exports, could be affected, with vulnerable items including industrial inputs, alcohol, and some manufactured goods.
- Beyond immediate export losses, the dispute touches digital trade rules, patents, ethanol access and deforestation concerns, and the final choice by the president could alter supply chains, investment and political dynamics ahead of Brazil’s elections.