U.S. slaps 25% tariff on Brazilian goods over unfair trade practices

The U.S. has levied 25% tariffs on most imports from Brazil effective next week, concluding a yearlong investigation into what Washington calls unfair trade practices, and reigniting tensions with the Latin American nation after negotiation fell apart.

The action, taken under Section 301 of the Trade Act of 1974, targets Brazilian practices, such as orders directing American technology firms — including X, Meta, and Google — to remove certain political content and suspend accounts belonging to U.S. residents, preferential tariffs for Mexico and India, weak intellectual property enforcement, and ethanol market barriers.

The 25% levy, set to take effect on July 22, will apply to most imports from Brazil, with exemptions for certain goods such as beef, orange juice, aircraft and parts, and energy products.

Brazilian trade ministry did not immediately respond to CNBC’s request for comments. 

The fresh tariffs come after the Supreme Court in February struck down President Donald Trump’s previous 50% levies on Brazilian goods, keeping in place only a 10% global tariff. Trump has sought to reinstate his tariff power by launching Section 301 probes, which allows him to impose levies on countries found to have engaged in unfair trade practices, without additional congressional authorization.

The extra tariffs are necessary to level the playing field for American workers and companies, the office of U.S. trade representative said in a statement.

In a post on X shortly after the official announcement, Secretary of State Marco Rubio said that President Luiz Inacio Lula da Silva’s government had “not negotiated in good faith” and that the tariffs were the price of Lula “putting his own ego ahead of making a deal.”

The move followed months of engagement, including several high-level meetings between Brazilian officials and USTR representatives in recent weeks.

Lula reportedly said last month that Brazil would not accept the treatment his country had received, referring to Trump’s proposal of 25% extra tariffs then.

A separate U.S. probe into forced-labor enforcement could see an additional 12.5% duty on Brazilian goods on top of the 25%, with the decision due next week.

The dispute has also spilled into Brazil’s upcoming presidential election in October. Lula has accused Senator Flavio Bolsonaro of helping trigger the tariffs after his Washington visit, although the senator denied and said he planned to persuade the Trump administration to delay the tariff imposition until after the election.