Trump Administration Imposes 25% Tariff on Certain Brazilian Goods

The Trump administration has ordered a new 25% tariff on certain goods from Brazil after the Office of the United States Trade Representative concluded a yearlong Section 301 investigation into what it called unfair Brazilian trade practices.

The action, announced in Washington by U.S. Trade Representative Jamieson Greer at President Trump’s direction, is set to take effect July 22. According to the USTR, the investigation found that Brazil’s acts, policies and practices had harmed American workers, businesses and innovators for decades by limiting access to one of the world’s largest markets.

The administration framed the move as a response to long-running barriers faced by U.S. exporters, especially in ethanol and other agricultural products. In a statement released by the USTR, Secretary of State Marco Rubio said President Luiz Inácio Lula da Silva and his government had not negotiated with the United States in good faith. Secretary of Agriculture Brooke Rollins said Brazil had put American farmers and producers at a disadvantage through unfair trade practices and illegal deforestation.

Rollins pointed in particular to Brazil’s 18% tariff on American ethanol. She said that duty had cut U.S. ethanol exports to Brazil by more than 87% since 2018. Industry groups that represent ethanol producers and corn growers also backed the decision, arguing that Brazil had maintained tariff and market barriers for years while its own producers continued to sell into the American market.

Geoff Cooper, president and chief executive of the Renewable Fuels Association, said Brazil had blocked lower-cost U.S. ethanol through what he described as a complicated framework of tariffs and marketplace barriers. Emily Skor, chief executive of Growth Energy, said the imbalance had caused serious harm to U.S. farmers and ethanol producers. Jed Bower, president of the National Corn Growers Association, said the administration had acted after investigating what he called an unfair trade disparity.

Support also came from other sectors affected by trade with Brazil. The Consumer Brands Association said it supported efforts to shape the final recommendations from the Section 301 case around domestic sourcing limits and unavailable natural resources, including coffee products, certain wood and plant products and other ingredients used by manufacturers. The Louisiana Loggers Association praised the tariff action as support for American wood products producers.

The measure adds a new point of tension in trade relations between Washington and Brasília at a time when food, agriculture and commodity supply chains remain sensitive to policy changes. While the USTR announcement focused on farm goods, ethanol and wood products, the tariff could also matter for importers and distributors in the beverage business if covered Brazilian products include wine or other drinks sold in the United States. In that case, import costs could rise, putting pressure on retail prices, restaurant wine lists and margins for companies that rely on Brazilian supply.

Brazil is not among the largest foreign wine suppliers to the United States, but it has built a niche presence with sparkling wines and regional labels. Any broader disruption in trade flows could also affect related categories such as fruit-based beverages, cachaça or ingredients used in beverage production, depending on how customs classifications are applied and which goods are ultimately covered.

The USTR did not detail in the release every product subject to the new duty, but said the action followed final findings under Section 301 of the Trade Act of 1974. That law gives the executive branch authority to respond to foreign practices judged unreasonable or discriminatory and harmful to U.S. commerce.

The administration’s public case centered on reciprocity and market access. Officials argued that after repeated attempts to negotiate with Brazil over ethanol and other issues, tariffs became necessary to pressure Brasília and protect domestic producers. The release highlighted support from cabinet officials and industry leaders as evidence that major parts of American agriculture and manufacturing see the move as overdue.

The tariff now opens a new phase in the dispute. Importers will be watching closely for product-level guidance as the July 22 start date approaches, while exporters in both countries assess how quickly contracts, shipments and pricing may need to change. For beverage companies in particular, even a targeted tariff can ripple through distribution if it affects finished drinks, raw materials or packaging inputs tied to Brazilian trade.