U.S. Trade Representative announces 25% tariffs on Brazil
by Lisa Hornung · UPIJune 2 (UPI) -- The President Donald Trump administration announced a proposed 25% tariff on several Brazilian imports, saying the country had engaged in unfair trade practices.
U.S. Trade Representative Jamieson Greer said in a press release Monday that under Section 301 of the Trade Act of 1974, Brazil had certain "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 illegal deforestation are unreasonable and burden or restrict U.S. commerce."
Section 301 allows the United States to impose tariffs in response to unfair trade practices.
"I launched this Section 301 investigation at President Trump's direction to address longstanding and pervasive U.S. concerns with certain of Brazil's trade policies and practices. Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet, which have accelerated in recent weeks," Greer said in a statement. "However, we continue to have substantial differences in resolving the issues identified in this investigation. I look forward to continuing engagement with the Brazilian Government in advance of the July 15 statutory deadline for taking responsive action."
The tariffs would exempt beef, coffee, aircraft equipment, rare earth metals and some fruits and vegetables.
The United States has had a trade surplus with Brazil for the past decade, The New York Times reported. Trump had created a 50% tariff on the country when it prosecuted Jair Bolsonaro, a friend of the president.
The administration has launched Section 301 investigations on more than a dozen countries since February, when the Supreme Court said his previous tariffs were illegal. He then created 10% global tariffs and raised them to 15%, but that was struck down by the U.S. Court of International Trade.
Section 301 requires the government to conduct investigations on each country, then have consultations and hearings before the tariffs can go into effect. Greer is scheduled to hold a public hearing on July 6, and Brazil has until July 15 to fix the issues the trade representative has outlined.
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Secretary of State Marco Rubio and President Donald Trump participate in a Cabinet meeting in the Cabinet Room of the White House on Wednesday. Photo by Samuel Corum/UPI | License Photo