The Trump administration on Monday proposed imposing 25% tariffs on all imports from Brazil, accusing the world’s tenth-largest economy of engaging in trade practices that are “unreasonable” and that “burden or restrict U.S. commerce.” The announcement, made by the Office of the U.S. Trade Representative, follows a months-long investigation into Brazil’s trade policies, including its own tariff structure and lax enforcement of anti-corruption measures.
Brazilian President Luiz Inácio Lula da Silva reacted with fury, calling the decision “an indignity” and accusing the administration of being influenced by his political rival, Senator Flávio Bolsonaro, who visited Washington last week. Senator Bolsonaro is the son of former President Jair Bolsonaro, once dubbed “the Trump of the Tropics.” Lula claimed the younger Bolsonaro is a “traitor” who sought foreign interference in Brazil’s affairs.
Trade Surplus Complicates Tariff Justification
The tariff proposal comes despite the United States enjoying a substantial goods trade surplus with Brazil. According to data published by the U.S. Trade Representative, U.S. exports to Brazil rose nearly 11% last year to $54.4 billion, while Brazilian exports to the U.S. fell 5.7% to $39.9 billion, yielding a surplus of more than $14 billion. The imbalance is even more lopsided in services, where U.S. exports reached $29.6 billion in 2024—four times Brazil’s services exports to the U.S.
Trade lawyer Ryan Majerus, a partner at King & Spalding, noted that the administration’s plan excludes more than half of U.S. imports from Brazil, including aircraft and key minerals, suggesting the tariffs are targeted rather than comprehensive.
Lula Threatens Retaliation, Blames Rubio
In a speech Tuesday in Catalão, south of Brasília, Lula said he had presented President Trump with documents proving the U.S. trade surplus during their May meeting at the White House. He also singled out Secretary of State Marco Rubio as an obstacle to better relations. “I spoke to President Trump for three hours, and that Marco Rubio guy, the head of the State Department, he is anti-Latin American,” Lula said. “He is a deadly enemy of Cuba, a deadly enemy of many Latin American countries. I already told Trump that he does not like Brazil.” The State Department did not immediately respond to a request for comment.
Lula also threatened to retaliate, saying, “I am not going to cry about it. If they don’t want to buy from us, we will sell to someone else.” China has been Brazil’s biggest trading partner for about a decade, providing an alternative market for Brazilian goods.
Political Undercurrents and Legal Maneuvering
The tariff dispute is deeply entwined with Brazilian domestic politics. Last year, Trump imposed a 50% tariff on Brazil, largely to protest the prosecution of Jair Bolsonaro for attempting to overturn his 2022 electoral defeat. Relations appeared to thaw after Lula’s visit to Washington in early May, but tensions flared again last week when the Trump administration designated two Brazilian gangs as terrorist organizations—a move that followed Senator Bolsonaro’s visit and that analysts say could strengthen his political standing.
Senator Bolsonaro publicly urged Rubio to avoid the tariffs, writing in a statement posted on social media that they would cause “serious damages to the Brazilian people—precisely the citizens that see the United States as a partner and a friend.”
Brazil’s government issued a statement blaming the Bolsonaro family for sabotaging bilateral dialogue, saying it hoped “the recommendations do not become effective tariffs.” It added, “But we stress we will adopt every measure that is capable of reducing the damage that might be caused to the national economy, to the jobs and the income of Brazilians.”
The Trump administration is using Section 301 of the Trade Act of 1974 to impose the tariffs, a legal avenue that has survived previous court challenges. This comes after the U.S. Supreme Court ruled in February that Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on multiple trading partners, including Brazil. The administration is expected to rely on Section 301 to recoup some of the tariff revenue lost due to that ruling.
The Office of the U.S. Trade Representative has scheduled a public hearing on the proposed tariffs for July 6. The move is likely to further strain relations between the two largest economies in the Americas, with implications for trade, regional politics, and the broader global economic order.
