Why the US is imposing 25% tariffs on specific imports from Brazil and how Lula responded | Today’s news
The United States will impose a 25% tariff on selected imports from Brazil starting July 22 after an investigation found the country engaged in unfair trade practices.
Why is the US imposing tariffs on Brazil?
According to PTI, the Office of the US Trade Representative (USTR) has concluded that Brazil has engaged in several practices that the US considers unfair or unreasonable. These include concerns about lax enforcement of corruption and tariff policies that Washington says disadvantage American businesses.
Despite these concerns, the United States has maintained a merchandise trade surplus with Brazil for several years.
U.S. Trade Representative Jamieson Greer said the tariffs aim to ensure fair competition for American workers and businesses.
“Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to further negotiations with Brazil to bring about long-needed changes to the issues identified in this investigation,” Greer said.
According to PTI, the tariffs are being imposed under Section 301 of the Trade Act of 1974, which authorizes the US government to investigate and respond to foreign trade practices it deems unfair.
How did Brazil and the US react?
The move comes months after the US Supreme Court struck down a special set of tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA). According to PTI, the court ruled in February that Trump exceeded his authority by using the law to impose broad tariffs on several trading partners, including Brazil.
Trump previously imposed a 50% tariff on Brazil under the IEEPA, citing the prosecution of former Brazilian President Jair Bolsonaro, who faces charges of allegedly trying to reverse his defeat in the 2022 presidential election.
However, relations between Trump and Brazilian President Luiz Inacio Lula da Silva appear to have improved after Lula visited the White House in May.
When the proposed tariffs were announced in early June, Lula reacted angrily. According to PTI, he accused Senator Flavio Bolsonaro, son of former President Jair Bolsonaro, who recently traveled to Washington. Jair Bolsonaro has long been considered a close political ally of Trump.
The decision on the tariff was also defended by US Secretary of State Marco Rubio, who accused Lula’s administration of not acting in good faith.
“Make no mistake about it: President Lula and his government did not deal in good faith with the US. His economic policies are bad for Americans and bad for Brazilians. For the past year, Lula has put his ego ahead of making a deal for the good of the Brazilian people, and these tariffs are the price,” Rubio wrote in a post on X.
