The US government announced that it may impose a new punitive 25 percent tariff on Brazilian imports, alleging that certain practices in Brazil are unfair.

Among the practices cited are e-commerce and illegal deforestation. Some products, including beef, coffee, rare earth metals, other metals, and aircraft parts, are exempt from the new tariff, which may take effect on July 15.

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The measure is based on an investigation launched in July 2025 by the Office of the United States Trade Representative (USTR), which concluded that Brazilian policies and practices are “unreasonable” and “burden or restrict” US trade.

The investigation’s final report calls for the imposition of “tariffs or other restrictions on imports of Brazilian products.”

“Based on this possibility, the US Trade Representative proposed the application of 25 percent tariffs on all goods from Brazil,” the document reads.

The additional tariffs, however, include exceptions for products that could cause “disruptions” across the economy if subjected to the new duties, as well as “certain products that cannot be grown or produced in sufficient quantities in the United States, nor obtained from other sources.”

Among the exceptions are fruits and nuts, crude oil and its derivatives, pharmaceutical compounds, organic chemicals, fertilizers, beef, coffee, rare earth minerals, certain metals and ores, and Brazilian aircraft and aircraft parts.

US Trade Act

The USTR’s decision, announced on Monday evening (Jun. 1), is based on provisions of Section 301 of the US Trade Act of 1974.

The investigation assessed practices in the areas of digital commerce and electronic payment services, such as the Pix instant payment system; preferential tariff policies; intellectual property protection; anti-corruption measures; access to the ethanol market; and illegal deforestation.

The USTR asserts that, in these areas, US companies and exports are being harmed. As a result, the US government has opened a public consultation on possible corrective measures.

The process includes a comment period ending July 1 and a public hearing on July 6, while negotiations with the Brazilian government continue. The legal deadline for adopting the new tariff is July 15, 2026.

The investigation has already heard testimony from more than 30 witnesses and received nearly 300 submissions.

US Ambassador Jamieson Greer said the investigation was launched at the request of President Donald Trump, who cited longstanding and widespread US concerns about certain Brazilian trade policies and practices.

“Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet. These meetings have intensified in recent weeks,” Greer said.

“However, we continue to have substantial differences regarding the resolution of the issues identified in this investigation. I look forward to continuing the dialogue with the Brazilian government before the July 15, 2026 legal deadline for taking corrective measures,” he added.