The US Trade Representative office released a preliminary report on Tuesday recommending a 25% tariff on various Brazilian products. About 1,700 items were exempted, including coffee, frozen orange juice and cuts of beef.
The USTR report, based on Section 301 of US trade law, accuses Brazil of unfair practices such as the treatment given to Pix and intellectual property issues. The exemption list also includes chemical and pharmaceutical products and aviation materials.
Minister Márcio Elias Rosa stated that the surtaxes, if applied, would affect 21% of Brazilian exports to the United States. The USTR opened a public consultation for the private sector to comment on the document before the final report, scheduled for July 15. The final decision will rest with President Donald Trump.
Brazilian business leaders criticized the government's lack of prior negotiation. Abiplast president José Ricardo Roriz Coelho said Brazil “dragged its feet” on the discussion, unlike other countries.
