Trump targets Brazil with 25% tariff, accuses Lula government of unfair trade practices – Firstpost


The United States has announced plans to impose a 25 per cent tariff on certain imports from Brazil, escalating trade tensions between Washington and Brasilia as President Donald Trump’s administration steps up its tariff push.

US Trade Representative Jamieson Greer said that the tariff action would be taken under Section 301 of the Trade Act after a year-long investigation concluded that Brazilian policies on digital trade, tariffs, intellectual property, ethanol access and deforestation were placing an unfair burden on US commerce.

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The United States Trade Representative (USTR) said the move was aimed at addressing policies that hurt American workers and companies.

“Today’s action is necessary to address these unfair trade practices to ensure American workers and companies can compete on a level playing field,” Greer said.

“Extensive negotiations with Brazil over the past year have not resolved these issues,” he added, while noting that Washington remained open to further talks.

The announcement makes Brazil the first country to be targeted under Trump’s new tariff strategy, which relies on Section 301 of US trade law to investigate and respond to alleged unfair trade practices by foreign governments.

Rubio accuses Lula of putting ‘ego’ ahead of Brazil’s interests

US Secretary of State Marco Rubio defended the tariff decision, accusing Brazilian President Luiz Inacio Lula da Silva’s government of failing to negotiate with Washington in good faith.

“Today, President Trump directed USTR to impose a 25% tariff on most Brazilian imports. Let there be no confusion about why: President Lula and his government have not negotiated with the US in good faith,” Rubio said in a post on X.

“His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that,” he added.

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The comments mark a sharp escalation in rhetoric between the two governments, with Washington criticising Brazil’s trade and regulatory policies while Brasilia has defended its economic policies and national interests.

Failed talks preceded tariff move

The tariff announcement came a day after Reuters reported that Brazil was preparing for the US to impose a new 25 per cent tariff on thousands of imports from the country following months of negotiations that failed to produce a breakthrough.

Brazil and the US have deep economic ties, with trade between the two countries covering sectors including agriculture, energy, manufacturing, aircraft, metals and technology.

Brazil is among the largest suppliers of several commodities to the US market, including coffee, steel products, agricultural goods and aircraft components. The impact of the tariff will depend on the final list of products covered by the measure.

The USTR investigation examined multiple areas, including Brazil’s digital regulations, restrictions affecting US ethanol exporters, intellectual property protections and environmental policies linked to deforestation.

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New front in Trump’s tariff push

Trump has made tariffs a central part of his economic agenda, arguing that trade barriers imposed by other countries disadvantage American companies and workers.

The administration has increasingly used tariffs as a negotiating tool to push trading partners to change policies that Washington considers unfair.

The move against Brazil comes as the US seeks to reshape trade relationships with several major economies and increase pressure on countries over market access, regulatory issues and industrial policies.

For Lula’s government, the tariff threat presents a new economic challenge as Brazil seeks to maintain export growth while managing relations with its largest trading partners.

Brazil has not yet announced any retaliatory measures but has previously said it would defend its commercial interests against trade restrictions.

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