U.S IMPOSES 25% TARIFFS ON BRAZILIAN IMPORTS OVER ALLEGED UNFAIR TRADE PRACTICES. (PHOTO).

U.S imposes 25% tariffs on Brazilian imports over alleged unfair trade practices

    The United States is moving forward with a 25% tariff on imports from Brazil after concluding that the country engaged in a series of trade practices Washington considers unfair.

The tariffs, announced after a yearlong review, are scheduled to take effect July 22. Some products will be exempt from the new duties, including goods not widely produced in the United States or those officials believe could cause supply chain disruptions. Exempted items include coffee, beef, oranges, orange juice, certain oil and gas products, and aerospace components.

U.S. trade officials said the investigation found concerns involving Brazil’s trade policies, including weak anti-corruption measures, tariff practices and other actions considered harmful to American businesses. The move comes despite the United States maintaining a trade surplus with Brazil in goods for several years.

Officials said the tariffs are intended to ensure American workers and companies are competing under fair conditions while leaving the door open for continued negotiations with Brazil.

Brazilian President Luiz Inácio Lula da Silva criticized the planned tariffs when they were first announced, arguing the dispute was politically motivated. He pointed to tensions involving his country’s upcoming elections and the role of Sen. Flávio Bolsonaro, the son of former Brazilian President Jair Bolsonaro and a political ally of President Donald Trump.

U.S. officials defended the decision, accusing Brazil’s government of failing to negotiate in good faith and arguing that the tariffs were necessary to address long-standing trade concerns.

The tariffs are being imposed under Section 301 of the Trade Act of 1974, which allows the United States to investigate and respond to foreign trade practices considered unfair or harmful.

The action follows a Supreme Court decision earlier this year that limited Trump’s ability to use emergency powers under another trade law to impose broad tariffs on U.S. trading partners. Before that ruling, Trump had announced a 50% tariff on Brazilian imports tied in part to Brazil’s prosecution of Jair Bolsonaro over allegations that he attempted to overturn his 2022 election loss.

Relations between Trump and Lula appeared to improve earlier this year after the Brazilian president visited the White House, but trade tensions have since resurfaced.