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Beef, coffee, and rare-earth materials escaped US tariffs amid trade tensions with Brazil over alleged unfair practices.
The United States is set to impose ۲۵ percent duties on thousands of Brazilian imports, including sugar, apparel, paper, and steel, as the White House revamps its tariff policy.
The new tariffs on Brazil were announced late on Wednesday by the US trade representative. These mark the first set of tariffs under the White House’s new trade strategy using Section ۳۰۱, a provision in existing US trade law that allows for investigations into so-called unfair trade practices, which the US then uses to justify levies imposed against a country.
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The tariffs, which were proposed last month, are set to take effect on July ۲۲, and will include a broad range of exceptions for products, including beef and coffee — both of which have become more expensive for US consumers over the last year amid US President Donald Trump’s trade war.
Beef prices are up ۱۱.۸ percent compared with this time last year, according to the most recent Consumer Price Index report released by the US Labor Department, and coffee is up ۱۲ percent.
Exemptions would also cover some rare-earth materials, aircraft parts, and certain oil and gas products.
Despite the US maintaining a growing trade surplus with Brazil, $۱۴.۴bn in ۲۰۲۵, up from $۷.۷bn in ۲۰۲۴, the new tariffs come amid the conclusion of a yearlong investigation that alleged that Brazil has engaged in unfair trade practices against the US, including on issues related to digital trade and illegal deforestation efforts.
However, Brazilian officials, including President Luiz Inacio Lula da Silva, have long decried those allegations, suggesting they were politically motivated, following the South American nation’s prosecution of former President Jair Bolsonaro, a key Trump ally, for his involvement in a coup attempt.
Secretary of State Marco Rubio pushed back on Lula in a post on X, claiming that the Brazilian leader, who is up for re-election, did not side with the US “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.
The newly announced tariffs follow a wave of negotiations that included more than ۳۰ meetings between officials from the two countries.
“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,” US Trade Representative Jamieson Greer said in a statement.
The newly announced tariffs are the first imposed under Section ۳۰۱ since the US Supreme Court struck down Trump’s sweeping global tariffs earlier this year. The high court ruled that the president lacked the authority to impose widespread tariffs using the International Emergency Economic Powers Act (IEEPA).
The move comes amid comparable trade negotiations with other governments around the world, including the European Union, India, Japan, and South Korea.
Brazil has also been included in a separate Section ۳۰۱ investigation that is set to conclude later this month amid allegations of forced labour in dozens of countries.
