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Brazilian forwarders are dealing with yet more uncertainty after US regulators proposed slapping its southern neighbour with a 25% tariff, claiming it had been engaging in “multiple practices” that “are unreasonable, and burden or restrict US commerce”.
Among these alleged practices, according to US Trade Representative (USTR) Jamieson Greer, are anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.
AGL Cargo’s Jackson Campos said the decision represented an “important shift in the US’ strategy”, noting that unlike previous political measures it focused on trade barriers, intellectual property, digital services, and market access.
“The most relevant point for Brazil is that several strategic products are excluded, including beef, coffee, critical minerals, and aerospace components, reducing the immediate impact on some of its main export categories,” Mr Campos told Лодстар.
“Even so, it increases uncertainty for companies exporting to the US. Depending on the final tariff, industrial sectors may face reduced competitiveness and higher costs to access the US market.”
The USTR’s position remains a proposal and subject to further review, with a consultation process required before a final decision is made, but forwarders said it reinforced the period of adjustment and negotiation in Brazil-US trade relations.
And it follows a strained relationship between President Donald Trump and his Brazilian counterpart, Luiz Inácio Lula da Silva, resulting from the former’s decision to slap a 50% tariff on Brazil in retaliation for the prosecution of its former president, Jair Bolsonaro.
However, the US Supreme Court ruled against the imposition of the 50% levy, back in February, as part of its wide-ranging block on the Trump administration’s sweeping tariff policy, with the rate capped at 10%.
Despite “several constructive meetings”, President Trump directed the USTR to investigate Brazil as a Section 301, addressing unfair foreign practices affecting US commerce and allowing the imposition of tariffs for unreasonable or discriminatory acts.
“I launched this Section 301 investigation at President Trump’s direction to address longstanding and pervasive US concerns with certain of Brazil’s trade policies and practices,” said Mr Greer; the USTR will hold a hearing on the action on 6 July.
“We continue to have substantial differences in resolving the issues identified in this investigation. I look forward to continuing engagement with the Brazilian government in advance of the 15 July statutory deadline for taking responsive action.”