Brazil’s Trade Minister Márcio Fernando Elias Rosa said nearly 18 per cent of the country’s exports to the United States, valued at around USD 7 billion, will be subject to new 25 per cent US tariffs from next week, as trade tensions between the two countries continue to escalate.

Following Washington’s announcement, Rosa said the Brazilian government was preparing support measures for industries expected to be most affected, including the timber, machinery, furniture and footwear sectors. The new tariffs are scheduled to come into force on July 22.

US Cites Unfair Trade Practices

The tariffs follow a year-long investigation by the Office of the US Trade Representative (USTR), which concluded that Brazil had engaged in what Washington described as unfair trade practices.

According to the USTR, the investigation found that Brazil had weak anti-corruption enforcement, imposed unfair tariffs on US goods and adopted other practices considered unreasonable under US trade rules.

US Trade Representative Jamieson Greer said the measures were intended to ensure fair competition for American businesses, while adding that the United States remained open to further negotiations with Brazil.

Several Key Exports Exempted

Washington has exempted a number of products from the new duties, particularly those regarded as critical to supply chains or not produced in sufficient quantities within the United States.

The exemptions include coffee, beef, oranges and orange juice, selected oil and gas products, as well as aerospace parts and components.

Brazil Rejects US Decision

Brazilian Foreign Minister Mauro Vieira criticised the tariff decision, calling it unilateral and unjustified. Speaking in Brasília, he also condemned recent remarks by US Secretary of State Marco Rubio, who accused the Brazilian government of negotiating in bad faith.

Vieira described Rubio’s comments as “unacceptable” and questioned Washington’s use of Section 301 of the US Trade Act of 1974, which allows the US government to investigate and impose tariffs or other trade restrictions against countries it believes engage in unfair trade practices or violate trade agreements.

Rosa said Brazil was also awaiting the outcome of a separate US investigation into alleged forced labour practices involving multiple countries. He added that Brasília remained open to dialogue and expected further engagement with the US administration.

Rare Earth Investment Dispute

The trade minister also revealed that the United States had urged Brazil to restrict investments by countries that do not comply with market rules in the rare earth minerals sector.

Rosa rejected the proposal, saying Brazil would not accept limitations on its investment policy.

The latest tariff measures mark a further deterioration in trade relations between Washington and Brasília, although both governments have indicated that negotiations remain possible.

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