US imposes tariffs on Brazilian goods due to trade practice concerns

US Proposes 25 Percent Tariffs on Brazilian Imports

The US administration has announced plans to impose a new 25 percent tariff on imports from Brazil, citing issues related to digital trade practices and deforestation. The proposed tariffs will be imposed under Section 301 of the US trade policy, which allows for broad authority to impose trade sanctions based on violations of trade agreements and deemed “unfair” trade practices.

The investigation into Brazilian trade practices began in July and has identified several key issues, including illegal deforestation, ethanol market access, and anticorruption enforcement. The US government claims that Brazil’s trade arrangements with Mexico and India create incentives for US companies to offshore production, resulting in a financial advantage for exporting to these countries rather than the US.

The proposed tariffs will exempt certain products, including beef, coffee, rare earths, metals, energy, and aircraft parts. A public comment period is set to begin on Thursday, with a written comment deadline of July 1 and a public hearing scheduled for July 6.

Other countries under investigation include China and Vietnam. The new tariff will partially replace a previous 50 percent tariff imposed last year by President Trump, which targeted Brazilian goods in response to the prosecution of former President Jair Bolsonaro, a Trump ally.

The US maintains a trade surplus with Brazil, with imports valued at $2.9 billion and exports valued at $3.3 billion in March, resulting in a $420 million trade surplus. The tariffs are set to expire in December 2027.

Source: Al Jazeera