The U.S. Trade Representative’s office said President Trump’s administration has proposed 25% tariffs on imports from Brazil, citing trade practices it described as unreasonable and harmful to U.S. commerce.
The announcement followed an investigation that raised concerns about Brazil’s anti-corruption enforcement, tariffs, and other policies. Brazilian President Luiz Inácio Lula da Silva responded with anger, saying he received the decision with indignation.
The proposal adds new tension to relations between Washington and Brasília. Lula also suggested that political allies of former President Jair Bolsonaro played a role in the U.S. move, pointing to recent contact between Bolsonaro’s sons and officials in Washington.
The tariff plan comes despite the United States holding a goods trade surplus with Brazil. U.S. exports to Brazil rose last year, while Brazilian exports to the United States declined.
The administration is using Section 301 of the Trade Act as the legal basis for the proposal. A public hearing on the tariffs is scheduled for July 6.