U.S. imposing 25% tariff on some Brazilian imports starting July 22, citing unfair trade practices
The U.S. is set to impose 25% tariffs on various Brazilian imports starting July 22, citing unfair trade practices and a lack of good-faith negotiations. While the Brazilian government has criticized the move as politically motivated, the U.S. maintains the tariffs are necessary to protect American workers.
Why it matters
This trade action signals a potential escalation in economic tensions between the U.S. and Brazil, impacting global supply chains.
The United States is imposing 25% tariffs on imports from Brazil after finding a range of what it deemed unfair trade practices by the world's 10th-biggest economy. The tariffs, which were first proposed last month, will take effect July 22.
The order exempts some goods that are not produced in the U.S. or that officials worry would disrupt supply chains. Exempted products include coffee, beef, oranges and orange juice, some oil and gas energy products and aerospace parts and components.
The Office of the U.S. Trade Representative concluded after a year-long investigation that Brazil had a range of unfair trade practices, including lax anti-corruption enforcement and unfair tariffs of its own, among other practices seen as unreasonable and unfair. The U.S., however, has had a goods trade surplus with Brazil for years.
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