President Luiz Inácio Lula da Silva condemned the new tariff policy introduced by Donald Trump's administration, which provides for a 25% duty on most goods imported from Brazil into the United States of America starting July 22.
Reasons for imposing tariffs
This new tariff regime is the first measure within the policy developed by Donald Trump's administration and could potentially cover dozens of other countries. According to information from the U.S. Trade Representative, this additional duty is being imposed based on the law on investigating unfair trade practices. Washington noted that Brazil has not achieved expected results in negotiations on digital trade, illegal deforestation, and other issues.
Potential scope of measures
It was also stated that similar policies could be applied to countries such as China, European Union member states, India, Japan, South Korea, and Mexico.
Reaction from Brazil and experts
The head of Brazil announced that the country would file a complaint with the World Trade Organization and activate its 'Law on Mutual Retaliatory Measures'. State Secretary Marco Rubio sharply stated that Lula should not engage in friendly negotiations with Washington, noting that 'tariffs are payment for the policy of the President of Brazil.'
Areas of application and exclusions
The new duties apply to goods such as sugar, agricultural machinery, textiles, electrical appliances, paper, and steel products. However, a number of goods are exempt from restrictions, including coffee, beef, aviation and aircraft spare parts, energy products, rare earth metals, honey, and organic honey.
Additional inspections
Furthermore, an upcoming inspection regarding Brazil was mentioned, which could result in the imposition of an additional 12.5% tax, potentially increasing the total tariff burden on some goods to 37.5 percent.