Why the US is imposing 25% tariffs on specific imports from Brazil and how Lula has responded
The United States will impose a 25% tariff on select imports from Brazil from 22 July, following an investigation that found the country had engaged
The United States will impose a 25% tariff on select imports from Brazil from 22 July, following an investigation that found the country had engaged in unfair trade practices. Why is the US imposing tariffs on Brazil? According to PTI, the Office of the US Trade Representative (USTR) concluded that Brazil had engaged in several practices the US considers unfair or unreasonable. These include concerns over weak anti-corruption enforcement and tariff policies that Washington says disadvantage American businesses. Despite those concerns, the United States has maintained a trade surplus in goods with Brazil for several years.
US Trade Representative Jamieson Greer said the tariffs are aimed at ensuring 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 continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," Greer said. According to PTI, the tariffs are being imposed under Section 301 of the Trade Act of 1974, which authorises the US government to investigate and respond to foreign trade practices it considers unfair. How have Brazil and the US reacted?
The move comes months after the US Supreme Court struck down a separate 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 had exceeded his authority by using the law to impose broad tariffs on several trading partners, including Brazil. Earlier, Trump had imposed a 50% tariff on Brazil under the IEEPA, citing the prosecution of former Brazilian President Jair Bolsonaro, who faces charges linked to alleged efforts to overturn his defeat in the 2022 presidential election.
However, relations between Trump and Brazilian President Luiz Inácio Lula da Silva appeared to improve after Lula visited the White House in May. When the proposed tariffs were announced in early June, Lula reacted angrily. According to PTI, he blamed Senator Flávio Bolsonaro, the son of former President Jair Bolsonaro, who had recently travelled to Washington. Jair Bolsonaro has long been regarded as a close political ally of Trump. US Secretary of State Marco Rubio also defended the tariff decision, accusing Lula's administration of failing to negotiate in good faith.
The BriefWire