Brazil Condemns Washington’s 25 Percent Tariff, Promises Countermeasures
Reciprocal Trade Actions Underway
Brazil calls Trump s 25 tariff – The administration of Brazilian President Luiz Inácio Lula da Silva has strongly criticized the newest American import duties targeting select Brazilian goods, announcing plans to implement matching tariffs on products from the United States. Washington made its announcement on Wednesday, declaring that a fresh 25 percent levy would be applied to particular Brazilian exports, pointing to what it described as inequitable commercial practices by the tenth-largest global economy. These duties, initially suggested during the previous month, are scheduled to become operational on July 22.
Several categories of merchandise have been excluded from the new charges. Goods that are either not manufactured within the United States or that administrators fear might disrupt existing supply networks will remain exempt. These include coffee, beef, oranges, orange juice, and parts for aircraft. In a declaration released late Wednesday, Lula’s presidential office challenged the American accusations regarding unfair commercial behavior. The Brazilian statement noted that 76 percent of all imports arriving from the United States entered Brazil without any duties in 2025. Furthermore, it highlighted that the average tariff actually applied to American products stood at merely 3.1 percent.
“Brazil will immediately begin the procedures necessary to invoke the mechanisms provided for under the reciprocity law … and will also pursue the matter through the World Trade Organization’s dispute settlement mechanism,” the statement declared, referring to a process that enables the country to respond with countermeasures.
Unusual Trade Relationship
For many years, the United States has maintained a substantial trade deficit with the rest of the globe, and President Trump has frequently referenced these imbalanced figures to support his aggressive tariff strategy. However, Brazilian imports represent an atypical target for such measures. The United States has consistently accumulated trade surpluses with Brazil. In fact, during the previous year, American exports to Brazil surpassed imports by almost $42 billion. Only the trade surpluses the United States maintained with the Netherlands and the United Kingdom were greater.
Brazil’s National Confederation of Industry expressed concern in a Thursday statement, noting that the new tariff places pressure on national exports and heightens uncertainty for businesses in both nations. The Trump administration originally implemented a 50 percent tariff on Brazilian imports last July. At that time, Trump referenced what he termed a “witch hunt” directed at former President Jair Bolsonaro. Bolsonaro’s ally was facing trial for allegedly attempting a coup, despite losing the 2022 election to Lula, and was subsequently found guilty. Portions of those earlier tariffs were eventually withdrawn.
“Brazil does not recognize the legitimacy of investigations that are not grounded in the multilateral rules governing international trade,” Lula’s office also stated.
Political Implications Ahead of Elections
During the previous tariff episode, U.S. President Donald Trump similarly accused Brazil of unfair trade practices and instructed U.S. Trade Representative Jamieson Greer to launch an investigation under Section 301 of the Trade Act of 1974. This investigation ultimately resulted in the office charging Brazil with insufficient anti-corruption enforcement and unfair tariffs, among other issues, in June. Lula specifically referenced this history late Wednesday, attributing the current wave of tariffs to the Bolsonaro family.
U.S. Secretary of State Marco Rubio commented on X regarding the new tariff, suggesting it resulted from Lula prioritizing “his own ego ahead of making a deal” and failing to negotiate with the United States in good faith. Brazil’s government dismissed this assertion, maintaining that it “never left the negotiating table.” The tariff is expected to heighten tensions between the two nations as Brazil approaches its presidential elections in October. President Lula is anticipated to compete against Senator Flávio Bolsonaro, the son of former President Jair Bolsonaro.
Flávio Bolsonaro shared Rubio’s statement on social media, adding his own critique: “Lula is no longer fit to be the president of Brazil. We are on a plane without a pilot.” He characterized Lula as “the Brazilian Biden,” describing him as “grumpy, reckless, and has become a danger to our nation.” Both leading candidates for October’s presidential contest have previously exchanged criticisms regarding their reactions to the widely unpopular U.S. tariffs, indicating they believe public perception of how they handle the situation will significantly influence voter behavior.
Paul Wiseman contributed to this report from Washington D.C.
