The United States has announced a new 25 percent tariff on Brazil, citing unfair trade practices. This decision follows the Supreme Court’s rejection of a previous tariff imposed by the Trump administration.
The tariff, set to take effect next Wednesday, will cover thousands of Brazilian products. However, it exempts key exports like oil, gas, beef, coffee, oranges, and aircraft parts. A senior official confirmed that the new tariff will include Brazilian ethanol.
Brazil’s potential retaliation against these measures remains a possibility, as indicated by a Brazilian government official prior to the U.S. announcement.
Last year, the U.S. administration imposed a 40 percent tariff on Brazilian goods. However, President Trump reduced these tariffs in November after discussions with Brazilian President Luiz Inácio Lula da Silva.
In February, the Supreme Court invalidated the previous tariffs, deeming them unlawful under an emergency law. Consequently, Trump removed the remaining tariffs from Brazil and other nations. A subsequent 10 percent tariff was applied to nearly all imports as a temporary solution but is set to expire this month.
The Trump administration has revived Section 301 to impose the new tariff and is preparing further tariffs, which may impact multiple countries, including Brazil.
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