ET 12:05

U.S. Proposes 25% Tariffs on Brazil, Citing Unfair Trade Practices

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Geopolitical

The Trump administration proposed 25% tariffs on Brazilian imports on June 2, 2026, alleging the country engages in unreasonable trade practices that burden U.S. commerce. U.S. Trade Representative Jamieson Greer said talks with Brazilian President Luiz Inácio Lula da Silva had been constructive but substantial differences remained. The proposed tariffs exclude more than half of U.S. imports from Brazil, including aircraft and key minerals, according to trade lawyer Ryan Majerus. Greer’s office scheduled a public hearing for July 6, 2026, on the measures. The action relies on Section 301 of the Trade Act of 1974, a legal basis that has survived previous court challenges. The Supreme Court in February 2026 struck down a 50% tariff on Brazil imposed under the International Emergency Economic Powers Act, ruling the administration overstepped its authority. Section 301 may now serve as the primary tool for additional tariff actions, as it is legally more resilient.

EditorJack Lee