US announces new 25% tariffs on Brazil for ‘unfair’ trade practices

The United States has announced the imposition of new 25% tariffs on various imports from Brazil, effective July 22, 2026. This decision follows a year-long investigation by the Office of the U.S. Trade Representative under Section 301 of the Trade Act of 1974, which concluded that Brazil engages in a range of "unfair" trade practices. These practices reportedly include lax anti-corruption enforcement, Brazil's own tariffs, digital trade issues, and a preference for its national instant payment system, Pix, which allegedly disadvantages American companies.

Brazil has vehemently condemned the new tariffs, with President Luiz Inácio Lula da Silva expressing indignation and denying the accusations of unfair trade. While the U.S. has maintained a goods trade surplus with Brazil for years, officials assert the measures are necessary to ensure a level playing field for American workers and businesses. Certain Brazilian goods, such as coffee, beef, oranges, and some energy and aerospace components, have been exempted from the tariffs to prevent disruptions to U.S. supply chains.