Trump Administration Proposes 25% Tariff on Many Brazilian Imports Under Section 301

The Trump administration proposed a new punitive tariff of 25% on many imports from Brazil under the Section 301 trade statute, with Jamieson Greer saying the measures followed a finding that Brazil’s practices were unfair on issues including digital trade and illegal deforestation.

“Trump administration proposes 25% tariffs on Brazil, citing "unreasonable'' trade practices The Trump administration proposed 25% tariffs on imports from Brazil, charging that the world’s 10th-biggest economy engages in trade practices that are “unreasonable’’ and that “burden or restrict U”

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The Office of the United States Trade Representative said the proposed 25% tariff would cover areas such as electronic payment services, preferential tariffs, intellectual property protection and ethanol market access, while excluding some items including beef, coffee, rare earths, other metals, energy and aircraft parts.

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Greer said the investigation into Brazil’s trade practices, started last year under Section 301 of the Trade Act of 1974, found practices that "are unreasonable and burden or restrict U.S. commerce," opening the door for a punitive tariff.

The proposed new tariff is subject to public consultation ahead of a July 15 deadline, and the USTR invited comment on the proposed tariffs through July 1 with a public hearing set for July 6.

Brazil’s President Luiz Inácio Lula da Silva said he received the decision "with indignation" and blamed the U.S. move on his rival in October’s elections, Flávio Bolsonaro, the senator who visited Washington last week.

Lula also accused U.S. Secretary of State Marco Rubio of hostility toward Latin America, saying, "He is a deadly enemy of Cuba, a deadly enemy of many Latin American countries."

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The U.S. trade representative Jamieson Greer said he and Donald Trump had "constructive" meetings with Lula and other Brazilian officials, but added that "We continue to have substantial differences" on issues identified in the investigation.

In response, Brazil’s government said its dialogue with American counterparts, which includes "personal involvement of Presidents Lula and Trump", was being "sabotaged by merely electoral and family matters" of the Bolsonaros.

The USTR scheduled a public hearing on July 6 on the proposed tariffs, with a July 15 deadline for taking "responsive action" in the Section 301 investigation.

“(ANSA) - BRASILIA, June 2 - The United States' decision to move forward with imposing 25% tariffs on Brazilian products opened Tuesday a new front in Brazil's political confrontation, where President Luiz Inácio Lula da Silva and Senator Flavio Bolsonaro exchanged accusations amid an increasingly polarized electoral campaign ahead of the presidential elections on October 4”

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The proposed 25% tariff would partially replace a tariff of 50% on many Brazilian goods imposed last year by Trump, with 40% as a punishment for Brazil’s prosecution of former President Jair Bolsonaro, a set of duties the U.S. Supreme Court struck down in February.

Brazil’s government said it hoped "the recommendations do not become effective tariffs" while stressing it would adopt "every measure that is capable of reducing the damage" to the national economy, jobs and income of Brazilians.

In parallel, the dispute is tied to the political confrontation around the Bolsonaros, with ANSA reporting that Lula blamed Flavio Bolsonaro for encouraging the measure during a recent visit to Washington and quoting Bolsonaro’s denial that he requested commercial sanctions against Brazil.