The United States will impose a 25% tariff on most imports from Brazil starting July 22, according to the U.S. Trade Representative’s office. The move is based on investigations into unfair trade practices under Section 301 of the U.S. Trade Act and follows extensive negotiations that failed to resolve issues related to digital trade and illegal deforestation.
Key Takeaways
The United States will impose a 25% tariff on most imports from Brazil starting July 22, citing unfair trade practices under Section 301 of the U.S. Trade Act. The move follows extensive negotiations that failed to resolve issues related to digital trade and illegal deforestation.
- US imposes 25% tariffs on Brazilian imports effective July 22
- Tariffs target thousands of products, including sugar, steel, and machinery
- Exemptions include beef, coffee, rare earths, energy products, aircraft parts
- Brazil rejects allegations and plans to invoke WTO dispute settlement mechanism
- Additional 12.5% tariff possible due to forced labor investigation
Source Claims Check
2 Differences Found| Claim | Status | Reason | |
|---|---|---|---|
| Products Affected By Tariffs | 1 Difference | Majority specifies product categories; CBS News and UPI say 'thousands of products'. | ▼ |
| Trade Investigations Opened By Ustr Office | 1 Difference | HuffPost and Reuters say 'close to 80'; CBS News and UPI report 'a yearlong investigation'. | ▼ |
| Tariff Rate | Broad Agreement | 25% tariff on most Brazilian imports starting July 22. | |
| Tariff Effective Date | Broad Agreement | Tariffs take effect July 22. | |
| Products Exempted From Tariffs | Broad Agreement | Beef, coffee, rare earths, energy products, aircraft parts. | |
| Additional Tariff For Forced Labor | Broad Agreement | Additional 12.5% tariff possible, bringing total burden to 37.5%. |
Close to 80 trade investigations have been opened by the USTR office, with a new wave of tariffs potentially affecting dozens of countries, including China, the European Union, India, Japan, South Korea, and Mexico. The tariffs will apply to thousands of Brazilian imports, such as sugar, agricultural machinery, apparel, electrical machinery, paper, and steel.
The U.S. has exempted certain products from the tariffs, including beef, coffee, rare earths, energy products, aircraft parts and components. Additional exemptions were added on Wednesday for organic honey, pig iron, unflavored instant coffee, and other products. Brazil has vehemently rejected all allegations of unfair trade practices.
Brazilian President Luiz Inacio Lula da Silva condemned the U.S. decision as unjustified and announced plans to invoke instruments under the “Reciprocity Law” and revisit the matter within the WTO dispute settlement mechanism. The tariffs are being imposed under Section 301 of the Trade Act of 1974, following a yearlong investigation that concluded Brazil had engaged in unfair trade practices.
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