The U.S. Trade Representative Jamieson Greer unveiled a 25 percent tariff on a wide swath of Brazilian imports, to U.S. firms, citing unfair trade practices uncovered in a Section 301 probe. The investigation flagged weak intellectual‑property enforcement, lax anti‑corruption measures, restricted ethanol market access and insufficient anti‑deforestation policing. The move adds to President Trump’s push to rebuild a durable tariff regime after the Supreme Court struck down earlier measures.

Greer noted that he and President Trump held several constructive meetings with Brazil’s President Luiz Inácio Lula da Silva, yet “substantial differences” persist. A public hearing is set for July 6, and Brazil has until July 15 for Brazil to present corrective action. Exemptions include beef, coffee, rare‑earths, aircraft parts and selected fruits, limiting immediate fallout for those sectors.

The tariff threatens to raise import costs for U.S. manufacturers relying on Brazilian inputs, squeezing margins in automotive, aerospace and electronics supply chains. Analysts warn that Brazil could retaliate with its own duties, potentially sparking a broader trade fric­tion. With a decade‑long U.S. trade surplus over Brazil, the new levy tests the resilience of that imbalance in the sector.