The U.S. will impose new 25% tariffs on Brazilian imports, including furniture, ethanol, machinery, footwear and sugar. The move launches a new wave of tariffs that could eventually affect dozens of countries.

The late-night announcement by U.S. Trade Representative (USTR) Jamieson Greer made Brazil the first country targeted under Trump's new tariff strategy, which relies on Section 301 of the Trade Act of 1974. 

Trump's previous global tariffs under an emergency law, including duties of up to 50% on Brazilian goods, were struck down by the U.S. Supreme Court in February.

The new tariffs are scheduled to take effect on 22 July, two days before Trump's temporary 10% global tariff is scheduled to expire. The final order maintained exemptions for Brazilian beef, coffee, aircraft and other goods but expanded that list.

Tariffs from other Section 301 probes are expected to eventually affect major U.S. trade partners including India, China, Japan, South Korea and the European Union. 

The U.S. Trade Representative's office announced the new tariffs on Wednesday after months of unsuccessful negotiations between U.S. and Brazilian officials.

The Trump administration argued that Brazil engaged in unfair practices, citing issues ranging from digital trade to illegal deforestation.

"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," U.S. Trade Representative Jamieson Greer said in a statement.

Brazilian President Luiz Inacio Lula da Silva said the U.S. decision lacks justification. Brazilian officials have long suggested, in private conversations, that the motives for the new tariffs were political, making negotiations fruitless.

Brazil would immediately begin proceedings to invoke instruments provided for under the "Reciprocity Law" and revisit the matter within the framework of the WTO dispute settlement mechanism, he said in a statement.

'Lula has put his own ego ahead of making a deal'

U.S. Secretary of State Marco Rubio blamed the Brazilian president and said "Lula and his government have not negotiated with the U.S. in good faith."

"For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that," Rubio said in a strongly worded post on X.

Brazil's Foreign Affairs Minister Mauro Vieira called Rubio's remarks unacceptable and offensive to the Brazilian government and people, adding Lula had sought dialogue throughout the process.

"Rubio launched a rude and arrogant attack on the head of state of a friendly country," he said in a statement.

Vieira also reiterated Brazil's willingness to negotiate despite Washington's "political motivation."

The American Chamber of Commerce for Brazil, a business group, reported the new tariff increased exemptions by 25%, covering some $11 billion in annual trade, $2 billion less than expected.

Around 18% of Brazil's exports to the U.S., or about $7 billion, will be affected by the new tariffs, said Brazil's Trade Minister Marcio Elias Rosa, adding the timber, machinery, furniture and footwear sectors are among the most affected.

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Brazil vehemently rejected all the allegations.

Brazil has also been included in a separate Section 301 investigation by USTR, due to conclude on 24 July, into connections to forced labor in the supply chains of dozens of countries.

The probe is expected to result in an additional 12.5% tariff, bringing the total burden for affected Brazilian products to 37.5%. 

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Brazil U.S. tariffs Donald Trump Trump Tariffs Global trade