US imposes 25% tariff on some imports from Brazil

The US plans to impose a 25% tariff on certain imports from Brazil under Section 301 of the Trade Act, US Trade Representative Jamieson Greer said late on Wednesday.

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The action follows a year-long probe which concluded that Brazilian policies on digital trade, tariffs, intellectual property, ethanol access and deforestation burden US commerce, USTR said in a statement.

Reuters reported a day before that Brazil was bracing for the US to impose a new 25% tariff on thousands of imports from the South American country after months of intensive but largely unproductive negotiations, citing three people familiar with the matter.

“Today’s action is necessary to address these unfair trade practices to ensure American workers and companies can compete on a level playing field,” Greer said.

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“Extensive negotiations with Brazil over the past year have not resolved these issues,” though the US is open to further talks, he said.

US Secretary of State Marco Rubio said the Brazilian government had “not negotiated with the US in good faith” and that Brazil’s President Luiz Inacio Lula da Silva had “put his own ego ahead of making a deal for the welfare of the Brazilian people.”

Brazil would be the first country targeted under US President Donald Trump’s new tariff strategy which relies on Section 301 of US trade law, a provision that authorizes investigations into alleged unfair trade practices.