The United States on Wednesday announced a new tariff on various imports from Brazil, after a year-long investigation into the Latin American giant’s trade and other policies.
The 25-per cent tariff is set to take effect July 22, a senior US official told reporters.
But a range of products, including beef, coffee, and certain aircraft parts, would be exempted, the official added.
The exclusions also cover certain goods that the United States does not produce.
“Brazil’s unfair trading practices have prevented US workers and producers from accessing this important market,” US Trade Representative Jamieson Greer said in a statement.
“We remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation,” he added.
In earlier findings, the US investigation deemed that certain practices by Brazil were “unreasonable or discriminatory and burden or restrict US commerce.”
The latest move also comes as President Donald Trump’s administration pushes to rebuild his economic agenda after the US Supreme Court in February struck down a swath of his global tariffs.
The Brazil tariffs were justified under Section 301 of the Trade Act, and the Trump administration this year initiated other probes using the same authority.
Already, in one set of probes, US officials proposed new tariffs targeting dozens of trading partners for their alleged failures to act against forced labor.
In the case of Brazil, a senior US official aimed Wednesday at what Washington deemed as adverse actions on digital trade, alongside “unfair” competition linked to state-owned electronic payments system PIX, among other issues.
The US official said the door to negotiations remains open, although Washington wishes to see its concerns resolved.
For example, the United States seeks to access the preferential tariff treatment that Brazil provides to partners like Mexico and India as well.
The official, however, rejected criticism that Section 301 probes were being used for political purposes.
While the Trump administration does not expect retaliation following Wednesday’s announcement, it warned that pushback could invite further US countermeasures.
For now, the United States has held constructive talks with its Brazilian counterparts, the official said.
At a public hearing held by the USTR’s office in Washington this month, Brazilian conservative presidential hopeful Flavio Bolsonaro urged the United States against imposing the new tariffs.
The eldest son of Brazil’s former right-wing president Jair Bolsonaro argued that new duties would benefit his political rival, President Luiz Inacio Lula da Silva.
The pair are key rivals in the October presidential ballot.
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Dozens of other participants testified at the two days of public hearings as well.
Last year, the Trump administration hit Brazil with sharp tariffs over the coup trial against Jair Bolsonaro, who is now serving a 27-year sentence.
Many of the duties were rolled back after talks between both sides, in a win for Lula.
AFP
