The United States will impose an additional 25 percent tariff on a wide range of Brazilian goods from 22 July, following a year-long Section 301 investigation that concluded Brazil maintains unreasonable and discriminatory trade practices. The measure, announced by the Office of the United States Trade Representative (USTR) late on 15 July, exempts over 2,100 product categories—including coffee, beef, orange juice, crude oil, and civil aircraft—to avoid domestic supply disruptions. The tariff will apply to ethanol, machinery, footwear, apparel, and various manufactured goods, affecting an estimated US$15 billion in annual exports, according to Brazilian industry estimates.

Viewed from Washington, the action targets what the USTR describes as a pattern of policies that disadvantage American firms: the state-backed Pix instant payment system, restricted access for US ethanol, weak anti-corruption enforcement, illegal deforestation, and court orders compelling tech platforms to remove political content. US Secretary of State Marco Rubio publicly blamed President Luiz Inácio Lula da Silva, stating his government “has not negotiated with the US in good faith” and that Lula “put his own ego ahead of making a deal.” The USTR, however, insisted the decision is not politically motivated and that negotiations remain open.

In Brasília, the government called the tariff a “deplorable milestone” and announced it will immediately activate the Economic Reciprocity Law, which allows countermeasures such as raising tariffs on US goods or suspending intellectual property obligations, and will take the case to the World Trade Organization. The Foreign Ministry, which says it held over 30 meetings with US counterparts, views the move as a “clear politicisation” of trade policy, pointing to a 2025 social media post by Donald Trump linking tariffs to the prosecution of former president Jair Bolsonaro. Brazilian industry groups warned of eroded competitiveness, with the National Confederation of Industry noting that exports to the US had already fallen 13 percent in the first half of 2026.

The tariff has become entangled in Brazil’s October presidential election. Polls show a majority of voters hold Senator Flávio Bolsonaro—son of the former president and Lula’s main rival—responsible for the tariff, after he travelled to Washington and asked the USTR to postpone the measure until after the vote. Lula’s camp has seized on the issue to bolster a sovereignty narrative, while Flávio Bolsonaro called Lula a “Brazilian Biden” and blamed his rhetoric for provoking the US. The USTR warned that any Brazilian retaliation could trigger further US countermeasures, and a separate Section 301 probe into forced labour could add another 12.5 percent tariff, with a decision expected by 24 July.