Trump tariff: USA defines this Wednesday whether new rates will apply to Brazil

How the investigation into tariffs against Brazil began In June, the Office of the US Trade Representative concluded an investigation opened almost a year earlier, based on Section 301 of the Trade Act of 1974, a mechanism that allows the American government to investigate possible trade barriers in other countries. (learn more below) In the final report, the organization stated that some Brazilian policies would be "irrational" or "restrictive" and could harm US companies and exporters. As a result, the agency proposed an additional tariff of 25% on Brazilian products. The investigation analyzed topics such as: PIX and payment services: the USTR states that the Brazilian system favors PIX to the detriment of American companies. Regulation of digital platforms: the body questions Brazilian court decisions involving social networks and US technology companies. Trade agreements: Americans criticize preferential tariffs granted by Brazil to partners such as Mexico and India. Illegal deforestation: the report highlights flaws in environmental inspection. Ethanol market: the USA alleges a lack of reciprocity in access to the Brazilian market. Intellectual property: the document cites problems in combating piracy and delays in analyzing patents. Fighting corruption: the USTR criticizes measures adopted by Brazil and cites decisions related to Operation Lava Jato. READ ALSO PIX, STF, social networks: understand the US criticism for proposing a 25% tariff US investigation against PIX exposes global dispute for control of digital payments At the same time, the US concluded an investigation into products manufactured with forced labor and included Brazil among the countries that, according to the American government, would not adequately monitor the entry of these goods. In this case, an additional surcharge of 12.5% ??was proposed. In the Brazilian government's assessment, the two measures can be applied cumulatively, leading to a total tariff of up to 37.5% on part of Brazilian exports to the USA. What is Section 301 Section 301 of the Trade Act of 1974 allows the U.S. government to investigate policies and practices of other countries that may harm American companies or exporters. ? The mechanism gives the Office of the US Trade Representative the power to investigate possible trade barriers and, if it concludes that they exist, recommend retaliatory measures, such as tariffs on imported products. The process involves investigation, technical analysis, public consultation and, only then, a decision on the application of the measures. The instrument has already been used in trade disputes, mainly against China, during Donald Trump's first administration. Section 301 differs from mechanisms such as Section 232, used with national security justification. While 232 targets risks to American industry, 301 focuses on practices considered unfair trade. Before that, Trump tried to impose tariffs on Brazil using the International Emergency Economic Powers Act (IEEPA), with a surcharge of up to 50% on Brazilian products. The measure was overturned by the US Supreme Court, which ruled that the law did not authorize the president to create import tariffs. Hearings bring together the Brazilian productive sector Senator Flávio Bolsonaro in a US hearing against tariffs Disclosure Before the final decision, the American government opened a public consultation to receive comments on the proposed tariffs. The schedule provided for registration for hearings by June 22nd, sending written contributions by July 1st and holding public hearings on July 6th and 7th. The demonstrations became part of the analysis that supported the final decision. The USTR hearings brought together representatives from industry, agribusiness and other Brazilian sectors who tried to avoid the application of the additional 25% tariff on products exported to the USA. The main argument was that the measure would increase costs not only for Brazilian companies, but also for American consumers and production chains. ? Among the main arguments presented were the integration of the economies of the two countries, the absence of unfair commercial practices and the risk of increased costs for US companies that depend on Brazilian products. (read the industry's arguments) Entities such as the National Confederation of Industry (CNI), the Federation of Industries of the State of São Paulo (Fiesp), the Brazilian Association of the Machinery and Equipment Industry (Abimaq), the Confederation of Agriculture and Livestock of Brazil (CNA) and representatives of the coffee, honey, fish and pig iron sectors defended negotiations instead of adopting new trade barriers. Senator Flávio Bolsonaro also participated in the hearing on his own initiative. In his speech, he stated that applying the tariffs at that time would be "the worst possible moment" and asked the US to postpone the measure to allow for new negotiations. His participation took place independently, without representing the Brazilian government, which sent observers to the meeting and maintained negotiations through diplomatic and technical channels. The Brazilian government's response The Brazilian government adopted a two-pronged strategy to try to avoid the application of the tariffs proposed by the US: Contesting the arguments presented by the USTR Keeping the negotiation channel with Washington open. In response to the investigation, Itamaraty stated that the American accusations do not prove that Brazilian policies harm United States companies or create barriers to trade. The government argues that issues such as PIX, the regulation of digital platforms and decisions by the Federal Supreme Court (STF) are related to the country's internal choices and cannot be used as a justification for commercial measures. In the document sent to the USTR, Brazil responded point by point to American criticism. Regarding PIX, he stated that the system is a public infrastructure open to national and foreign companies and cited the activities of American companies in the Brazilian market. In relation to social networks, he argued that judicial decisions follow Brazilian laws and apply equally to national and foreign companies. The government also argued that trade agreements signed by Brazil with other countries follow international rules, that policies to combat deforestation and corruption have been strengthened in recent years and that the country has inspection mechanisms against work similar to slavery. In addition to formal defense, Brazil sought coordination with companies and entities from both countries. The government identified demonstrations by American companies opposing the tariffs. As g1 showed, American companies that depend on Brazilian imports pressured Washington to remove products from Brazil from the surcharge list. ? In statements sent to the USTR, companies and entities from sectors such as construction, mining, flooring, education and housing stated that many Brazilian products do not have equivalent substitutes and warned that the measure would increase costs for US companies and consumers, without strengthening domestic production. Negotiations with the USA continue until the final decision Marco Rubio and Mauro Vieira after meeting on November 13, 2025 Reproduction/X After the hearings, the government began working with the possibility of the tariffs coming into force, but was still evaluating the chance of changes to the final text, such as expanding the list of products exempt from the surcharge. The expectation was for a final round of conversations before the announcement. According to members of the government, President Luiz Inácio Lula da Silva (PT) defended that Brazil maintain negotiations until the end of the deadline, without accepting the justifications presented by the USA for imposing the tariffs. If the measure comes into force, the initial reaction should be an official expression of "outrage" with the White House's decision, according to the president's interlocutors. The note should reinforce the arguments presented throughout the investigation, that the measures are unjustified and that the Brazilian tariff structure already favors American exports. After that, the government intends to analyze the final list of affected products to define the next steps, including continuing negotiations or the possible adoption of measures provided for in the Economic Reciprocity Law, which allows responding to trade barriers imposed by other countries.