US levies 25% tariff on certain Brazilian products

The Office of the United States Trade Representative (USTR) said it is imposing a 25 per cent tariff on certain Brazilian goods under Section 301 of the Trade Act of 1974, at President Trump’s direction.The USTR in a press release informed that the action followed a yearlong investigation that found certain Brazilian measures on digital trade and electronic payment services, preferential tariffs, anti-corruption interference, intellectual property protection, ethanol market access and illegal deforestation to be unreasonable and to burden or restrict US commerce.

The US Trade Representative said it is imposing a 25 per cent tariff on certain Brazilian goods under Section 301.
The action follows a yearlong probe into Brazilian policies covering digital trade, tariffs, anti-corruption, IP, ethanol access and deforestation.
Importers and sourcing teams with Brazil exposure will watch covered products and further talks.

The investigation included two public hearings, more than 360 public comments and negotiations with Brazil.

The agency said the US sought consultations on July 15, 2025, held consultations on April 15 and 16, 2026, determined on June 1, 2026 that certain Brazilian acts were actionable, and held a further hearing on July 6 and 7 at which 77 witnesses testified.

Ambassador Jamieson Greer said negotiations over the past year had not resolved US concerns, but that the US remained open to further talks with Brazil. 

For textile, apparel and retail supply-chain companies with exposure to Brazil-origin merchandise, the immediate trade issue is product coverage, as exposure will depend on whether individual goods are included in the action.

Fibre2Fashion News Desk