U.S. Government Imposes New Tariffs On Products From Brazil

U.S. Trade Representative Jamieson Greer announced last week that the Trump administration will use its powers under Section 301 of the Trade Act of 1974 to impose new tariffs on certain goods from Brazil. The 25 percent tariffs, which will not stack on top of Section 232 tariffs on products from Brazil, are expected to take effect on July 22, but goods in transit before that date will not be subject to the tariffs if they arrive by July 29.

The penalties will apply to most imports from Brazil, with exemptions for products including beef, orange juice, aircraft and parts, and energy products. Aluminum hydroxide, ash containing precious metals and precious metal compounds, iron and steel waste and scrap, and pig iron also are exempt.

The decision to impose the Section 301 tariffs followed a yearlong investigation by the Office of the U.S. Trade Representative (USTR) into Brazil’s trade practices. As Reuters noted, it also came after “fruitless negotiations and over 30 meetings between U.S. and Brazilian officials after the Trump ⁠administration proposed new tariffs on many imports from Brazil in June, saying its practices were unfair on a range of issues from digital trade to illegal deforestation.”

“Brazil’s unfair trading practices have prevented U.S. workers and producers from accessing this important market with over 210 million consumers,” Ambassador Greer said. “Today’s action is necessary to address these unfair trade practices to ensure American workers and companies can compete on a level playing field. 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.”

Read more in the Federal Register notice. Supply Chain Dive also has more information. More penalties may be coming very soon.

According to CNBC, “A separate U.S. probe into forced-labor enforcement could see an additional 12.5 percent duty on Brazilian goods on top of the 25 percent.” That decision is due this week.