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US to impose 25% tariff on Brazilian imports starting July 22

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US to impose 25% tariff on Brazilian imports starting July 22
Photo: click2houston.com

Key Points

  • The US will impose a 25% tariff on Brazilian imports starting July 22 due to claims of unfair trade practices.
  • Critical products not produced in the US, such as coffee, beef, and aviation parts, were exempted from the new tariffs.
  • A one-year investigation by the Office of the United States Trade Representative identified issues such as inadequate anti-corruption efforts in Brazil.
  • Brazilian President Lula reacted by claiming the decision was linked to his political rival Bolsonaro.

By the Numbers

25% new tariffJuly 22 effective date1 year-long investigation

The United States has decided to impose a 25% tariff on products originating from Brazil after concluding that the country has unfair trade practices. These tariffs, which came to the agenda last month and will go into effect on July 22, are being implemented to protect American workers and companies on a level playing field.

A year-long investigation by the Office of the United States Trade Representative revealed that it identified various issues, such as Brazil's inadequate anti-corruption measures and its own unfair tariffs. However, coffee, beef, oranges, certain oil and gas products, and aviation parts—which US companies do not produce or which raised concerns that they could disrupt the supply chain—were exempted from this new tariff implementation.

Brazilian President Luiz Inácio Lula da Silva reacted harshly to the decision, linking this move to his political rival in the October elections, Senator Flávio Bolsonaro. US Secretary of State Marco Rubio argued that Lula failed to conduct good-faith negotiations, putting the welfare of his own people on the back burner, and stated that the imposed tariffs are a price for this.

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Frequently Asked Questions

When and at what rate will the new tariffs go into effect?
The 25% tariffs that the US will impose on Brazilian import products will go into effect as of July 22.
Are some products exempted from the new tariff?
Yes, coffee, beef, orange juice, certain energy products, and aviation parts, which are not produced in the US and could negatively affect the supply chain, were exempted from the tax.
What is the US citing as the reason for these additional tariffs?
As a result of a one-year review conducted by the Office of the United States Trade Representative, Brazil's inadequate anti-corruption efforts and unfair tariff practices were cited as reasons.

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