Brazilian products could face a 25% tariff in the US.

The United States government has announced that it may impose a new punitive tariff of 25% on Brazilian imports. The justification is that some of Brazil's practices are unfair. 

Among the practices mentioned are digital commerce and illegal deforestation. Some items such as beef, coffee, rare earth elements, other metals, and aircraft parts are excluded from the new tariff – which could come into effect on July 15.

The justification for applying the measure is an investigation, opened in July 2025, by the Office of the United States Trade Representative (USTR), which concluded that Brazilian policies and practices are "unreasonable" and "burden or restrict" U.S. trade.

The final investigation report predicts the imposition of "tariffs or other restrictions on the importation of Brazilian products. Based on this possibility, the US trade representative proposed applying tariffs of 25% on all goods from Brazil."

The penalty involving extra taxation, however, provides some exceptions for products that could cause "disruptions" throughout the economy if subjected to additional tariffs; as well as "certain products that cannot be grown or produced in sufficient quantities in the United States, nor obtained from other sources."

Among the exceptions are fruits and nuts, crude oil and derivatives, pharmaceutical compounds, organic chemicals, and fertilizers. Also exempt are beef, coffee, rare earth elements, certain metals and ores, as well as Brazilian aircraft and aircraft parts.

Section 301 of the Commerce Act

The USTR decision was announced on Monday night (1st) and is based on terms of Section 301 of the US Trade Act of 1974.

The investigation assessed practices in the areas of digital commerce and electronic payment services, such as Pix; granting preferential rates; protection of intellectual property; combating corruption; access to the ethanol market; and illegal deforestation.

The USTR states that these issues are detrimental to US businesses and exports. As a result, the US government has opened a public consultation on possible corrective measures.

The process includes submitting comments until July 1st and a public hearing on July 6th, while negotiations with the Brazilian government continue. The legal deadline for the eventual adoption of the new tariff is July 15, 2026.

Research 

The investigation has already heard from more than 30 witnesses and nearly 300 testimonies.

According to US Ambassador Jamie Greer, the investigation began at the request of President Donald Trump, who cited long-standing and widespread US concerns about certain Brazilian trade policies and practices.

“Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet, which have intensified in recent weeks,” Greer stated. “However, we continue to have substantial differences in resolving the issues identified in this investigation. I look forward to continuing the dialogue with the Brazilian government before the legal deadline of July 15, 2026, for taking corrective action,” he added.