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USTR Proposes 25% Tariff on Brazilian Goods for Unfair Trade Practices, Including Ethanol

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The US Trade Representative on Monday proposed a 25% tariff on certain Brazilian goods following an investigation into unfair acts, policies, and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and more.

Citing Section 301(b) of the Trade Act, the US Trade Representative has proposed responsive action for public comment, while the US continues to engage intensively with Brazil to seek resolution of US concerns, according to the USTR statement.

"Over the past year, President Trump and I have had several constructive meetings with President Luiz Incio Lula da Silva and his cabinet, which have accelerated in recent weeks," said Ambassador Jamieson Greer.

Greer said the two sides continue to have "substantial differences" over how to resolve issues identified in the investigation.

"I look forward to continuing engagement with the Brazilian Government in advance of the July 15, 2026, statutory deadline for taking responsive action," Greer said.

In 2017, Brazil abruptly discontinued its previously balanced tariff treatment of ethanol and has since failed to provide reciprocal tariff treatment for US ethanol exports, according to the USTR statement.

USTR will hold a hearing about the proposed action on July 6, 2026.

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