WASHINGTON, D.C. / RankWire.AI / – The United States will impose a 25% tariff on thousands of Brazilian goods starting July 22. The Office of the U.S. Trade Representative announced the action after a yearlong Section 301 investigation. Furniture, ethanol, machinery, footwear, sugar, apparel, electrical equipment, timber and paper are among the affected categories. The additional duty will apply to goods entered for U.S. consumption from 12:01 a.m. Eastern time that day.
U.S. Trade Representative Jamieson Greer said the investigation covered digital trade, electronic payments, preferential tariffs, anticorruption enforcement, intellectual property, ethanol access and illegal deforestation. His office determined that several Brazilian policies burdened or restricted U.S. commerce under the Trade Act of 1974. The agency reviewed more than 360 public comments before issuing its final order. It also held consultations with Brazil in April following the investigation’s launch in July 2025.
The tariff order includes broad exemptions for beef, coffee, energy products, rare earth materials, civil aircraft and aircraft parts. The final list also excludes unflavored instant coffee, organic honey, pig iron and certain steel scrap. Products already covered by Section 232 tariffs will not face the new levy. Those duties apply to categories including steel, aluminum, copper and automobiles. The exemptions cover about $11 billion in annual trade, according to the American Chamber of Commerce for Brazil.
Brazil rejects U.S. findings and starts response
Brazil’s government rejected the U.S. findings and said the unilateral measure lacked justification. It said officials had held more than 30 meetings with U.S. counterparts since July 2025. The government also cited U.S. data showing a cumulative American trade surplus of $424.5 billion with Brazil over 15 years. Brazil said its digital, environmental, tariff, anticorruption, intellectual property and ethanol policies comply with domestic law and international commitments.
President Luiz Inácio Lula da Silva said Brazil would immediately begin procedures under its Economic Reciprocity Law. The government also said it would return the dispute to the World Trade Organization’s settlement mechanism. Brazil’s trade ministry estimated that the tariffs cover about 18% of the country’s exports to the United States. Those shipments have an annual value of roughly $7 billion. Trade Minister Marcio Elias Rosa listed timber, machinery, furniture and footwear among the most exposed sectors.
Tariff scope centers on industrial and farm goods
The U.S. order leaves several of Brazil’s largest export products outside the new tariff. Beef, coffee, aircraft, aircraft parts and energy products remain exempt. Many manufactured and agricultural goods will face the additional 25% charge. The measure uses Section 301 of the Trade Act, which authorizes action against foreign practices that burden U.S. commerce. USTR said the tariff applies to Brazilian imports except products listed in its exemption schedules.
Brazil’s government said it would meet affected industries and strengthen support under its Brasil Soberano economic protection plan. It also maintained that its Pix instant payment system promotes competition, financial inclusion and access to secure payment services. USTR said previous consultations had not resolved the issues identified during its investigation. Greer said the United States remained open to further negotiations with Brazil as the July 22 tariff implementation date approached.