Jamieson Greer, chief of the U.S. Trade Representative office, has recommended a large-scale tariff on Brazilian products to President Donald Trump.
The move signals a significant escalation in trade tensions between the two nations, potentially disrupting supply chains and altering the economic relationship between the U.S. and the government of President Luiz Inácio Lula da Silva.
Greer said the recommendation to Brazilian officials during a bilateral meeting on Tuesday, July 14 [1]. The proposed tariff, referred to as a "tarifaço," is set at a rate of 50% [2]. According to Greer, the measure is intended to protect U.S. interests following what he described as a lack of commitment from Brazil [1].
While the USTR indicated that there will be a larger list of exemptions for certain goods, Greer said that negotiations regarding the tariffs are now closed [1]. The impact of the measure is expected to be widespread, with estimates suggesting the tariff could affect 31% of Brazil's trade with the United States [1].
Brazilian officials were informed that the recommendation is final. The U.S. government's decision to move forward with the tariffs follows a period of bilateral discussions that Greer said did not yield the necessary results for the U.S. administration [1].
The specific sectors within Brazil's economy that will be exempt from the 50% rate have not yet been fully detailed, though the overall scope of the trade impact remains significant [1, 2].
“The tariff could affect 31% of Brazil's trade with the United States”
The imposition of a 50% tariff on nearly one-third of bilateral trade represents a shift toward aggressive protectionism in U.S.-Brazil relations. By closing negotiations and moving to a final recommendation, the U.S. is leveraging market access to pressure the Brazilian government, which may lead to retaliatory tariffs or a search for alternative trading partners in Asia and Europe.
