USA justifies new tariffs on Brazil with alleged forced labor; understand The announcement of the new 12.5% ??tariff by the United States increased pressure on Brazilian industry. While agribusiness was almost left out of the impacts of the tariff, industry was the most affected and, therefore, demands flexibility from the federal government. The sector's request is to negotiate directly with the Americans, discarding any attempt to respond in kind through the Law of Reciprocity. With the new announcement, the total tax charged on certain Brazilian products exported can reach 37.5%. See the main items exempt from the new tariff of up to 12.5% ??on forced labor. But the Palácio do Planalto stated this Friday (24) that the measure is "completely arbitrary and unjustified". Therefore, the government will "immediately" begin the procedures to activate the instruments provided for in the Reciprocity Law and will take the issue to the World Trade Organization (WTO). The new charge was announced by the US trade body. The American government claimed that Brazil does not have laws strict enough to prohibit the entry of goods produced with forced labor and applied an additional tax of 12.5% ??to the country. (understand the situation in the report below) Amcham: According to the American Chamber of Commerce for Brazil (Amcham), which brings together representatives of American companies in the country, 85.3% of Brazilian exports to the USA will be subject to the maximum surcharge of 37.5% — the result of the sum of the 25% announced on the 15th and the 12.5% ??presented now —, "weakening production chains and increasing costs". In the entity's assessment, the new scenario further compromises the competitiveness of Brazilian exports, tends to deepen the retraction of bilateral trade, weakens integrated production chains between the two countries and could increase costs for North American companies and consumers. "The new tariff increases the negative impacts on Brazilian exports, with several sectors subject to significant surcharges of 37.5%. Reversing this scenario necessarily involves resuming negotiations between the two governments. Bilateral understanding is the most effective way to meet the interests of both sides", stated the president of Amcham Brasil, Abrão Neto. Amcham also stated that reciprocity measures, considered by the federal government as a response to tariffs, present a high risk of causing political and commercial escalation and worsening the economic impacts for Brazilian companies, workers and consumers. Abimaq Industrial and Port Complex of Pecém Disclosure/CNI The machinery and equipment industry, one of the most vulnerable to tariffs, foresees an immediate impact on its operations. According to Abimaq, an association that represents companies in the sector, the sum of the rates eliminates the competitiveness of Brazilian manufacturers compared to US competitors, threatening contracts and business predictability. In 2025, Brazilian exports of machinery and equipment totaled US$13.8 billion. The USA was the main individual destination, with purchases of around US$3.2 billion, equivalent to 23% of the sector's foreign sales. The entity's executive president, José Velloso, assessed that the justification presented by the American government was politically motivated and was a response to the US Supreme Court's demand for the Executive to present a justification for the adoption of new tariffs. He also highlighted that, for the sector, the situation is likely to worsen. "We are imagining that we should see a drop of between 10% and 11% in our exports to the USA." "We understand that the US government's motivation to tax imported products alleging forced labor is a decision that has a political nature. It was a response to the US Supreme Court, which in February prohibited the American government from taxing products without a clear motivation. Now there is the motivation, which is forced labor." According to Velloso, the sum of the two tariffs puts Brazilian industry at a disadvantage compared to American manufacturers. "In the case of Brazil, this is bad because we already had a tariff of 25% and now we have a tariff of 37.5% with the addition of 12.5%. This takes away our competitiveness compared to machines and equipment manufactured in the USA." The association also defends the regulation of the Sovereign Brazil Plan 3, the deferral of federal taxes, the expansion of Reintegra to 5% and the strengthening of commercial promotion aimed at market diversification. Abimaq also positions itself against the application of the Economic Reciprocity Law as a response to American tariffs. In the entity's assessment, an escalation of trade barriers tends to increase costs for companies and consumers, reduce business predictability and harm highly integrated production chains between Brazil and the United States. CNI The National Confederation of Industry (CNI), which represents the industrial federations of all states, also defended the continuity of diplomatic negotiations to avoid further damage to bilateral trade. After meeting with the Minister of Development, Industry, Commerce and Services (MDIC), Márcio Elias Rosa, the president of the CNI, Ricardo Alban, stated that the productive sector will continue to support the strategy adopted by the Brazilian government. (see government measures) "We left here very satisfied with the minister's categorical statement that Brazil will continue negotiating. This is the number one option that exists at the moment: continue negotiating." According to Alban, the CNI works together with the government to create a new mission under the New Industry Brazil (NIB) policy, aimed at supporting companies affected by tariffs and the internationalization of Brazilian production chains. "We talked about how we can be effective in an emergency and in a planned way. We are bringing support
'Brazil needs to act firmly': production sector calls for negotiation and speed after new tariff of up to 37.5%
USA justifies new tariffs on Brazil with alleged forced labor; understand The announcement of the new 12.5% ??tariff by the United States increased pressure on Brazilian industry. While agribusiness was almost left out...
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