Why Brazil is pushing back against US 25% tariffs: What to know

Brazil has denounced the US decision to impose 25% tariffs on certain Brazilian products which followed the Trump administration’s investigation into a range of what it deemed deceptive trade practices by the South American country.

The office of the US trade representative said it concluded after a year-long probe that Brazil had engaged in a range of unfair trade practices including lack of oversight and unreasonable tariffs, among other harmful behaviours.

The tariffs which were suggested last month will take effect on July 22. Meanwhile the order excludes some goods not produced in the US due to officials' fear of supply chain disruptions. These include coffee, beef, orange juice, oil and gas energy products and aerospace components.

In this connection, US trade representative Jamieson Greer said: “ Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation.”

Notably, the tariffs are being imposed under Section 301 of the Trade Act of 1974 after the US initiated an inquiry into Brazilian trade practices.

The US Supreme Court in February struck down many ofTrump’s tariffs imposed under a different law. The court found he exceeded his authority under that act to impose sweeping tariffs on US trading partners including Brazil.

Under the law, Trump imposed a 50% tariff on Brazil to protest its prosecution of Jair Bolsonaro for attempting to overturn his 2022 election defeat.

Nonetheless, Trump’s relationship with Lula seemed to improve in May when he visited the White House. The US lifted the 40% tariffs it had placed months earlier on Brazilian goods, showcasing the progress made in trade negotiations between the two countries.