25% US tariffs to hit 18% of Brazil's exports worth $7 Billion: Foreign Minister
Brazil said 18 per cent of its exports to the United States will face 25 per cent tariffs from July 22. The move deepens trade tensions, even as Brasilia says it is preparing industry support and remains open to talks.
Brazil's Trade Minister Mrcio Fernando Elias Rosa said that nearly 18 per cent of the country's exports to the United States, worth around $7 billion, will be subject to new 25 per cent US tariffs beginning next week, as trade tensions between the two countries deepen.
Speaking after Washington announced the new duties, Rosa said the Brazilian government was preparing measures to support industries expected to be hardest hit, including the timber, machinery, furniture and footwear sectors.
The tariffs follow a year-long investigation by the Office of the US Trade Representative (USTR), which concluded that Brazil engaged in what Washington described as unfair trade practices. The new duties are scheduled to take effect on July 22.
The United States has, however, exempted several products considered critical to supply chains or not widely produced domestically, including coffee, beef, oranges and orange juice, certain oil and gas products, and aerospace parts and components.
According to the USTR, the investigation found that Brazil maintained weak anti-corruption enforcement, imposed unfair tariffs of its own and adopted other practices deemed unreasonable. US Trade Representative Jamieson Greer said the tariffs were necessary to ensure fair competition for American businesses, while adding that Washington remained open to further negotiations.
TARIFFS UNJUSTIFIED: BRAZIL MINISTER
Brazilian Foreign Minister Mauro Vieira strongly criticised the US decision, describing the tariffs as unilateral and unjustified. Speaking in Braslia, he also condemned recent remarks by US Secretary of State Marco Rubio, who accused the Brazilian government of negotiating in bad faith, calling the comments "unacceptable."
Vieira also questioned Washington's reliance on Section 301 of the US Trade Act of 1974, which allows the US government to investigate and impose tariffs or other trade restrictions on countries it believes engage in unfair trade practices or violate trade agreements.
Meanwhile, Rosa said Brazil expects the United States to announce the outcome of a separate investigation related to alleged forced labour practices involving multiple countries. He added that Braslia remains open to dialogue and expects further contact from the US administration.
The Brazilian minister also revealed that the United States had urged Brazil to limit investments by countries that do not comply with market rules in the rare earth minerals sector. Rosa rejected the proposal, saying Brazil would not accept restrictions on its investment policy.
The latest tariff measures mark a further deterioration in trade ties between the two countries, even as both governments maintain that negotiations remain possible.
Brazil's Trade Minister Mrcio Fernando Elias Rosa said that nearly 18 per cent of the country's exports to the United States, worth around $7 billion, will be subject to new 25 per cent US tariffs beginning next week, as trade tensions between the two countries deepen.
Speaking after Washington announced the new duties, Rosa said the Brazilian government was preparing measures to support industries expected to be hardest hit, including the timber, machinery, furniture and footwear sectors.
The tariffs follow a year-long investigation by the Office of the US Trade Representative (USTR), which concluded that Brazil engaged in what Washington described as unfair trade practices. The new duties are scheduled to take effect on July 22.
The United States has, however, exempted several products considered critical to supply chains or not widely produced domestically, including coffee, beef, oranges and orange juice, certain oil and gas products, and aerospace parts and components.
According to the USTR, the investigation found that Brazil maintained weak anti-corruption enforcement, imposed unfair tariffs of its own and adopted other practices deemed unreasonable. US Trade Representative Jamieson Greer said the tariffs were necessary to ensure fair competition for American businesses, while adding that Washington remained open to further negotiations.
TARIFFS UNJUSTIFIED: BRAZIL MINISTER
Brazilian Foreign Minister Mauro Vieira strongly criticised the US decision, describing the tariffs as unilateral and unjustified. Speaking in Braslia, he also condemned recent remarks by US Secretary of State Marco Rubio, who accused the Brazilian government of negotiating in bad faith, calling the comments "unacceptable."
Vieira also questioned Washington's reliance on Section 301 of the US Trade Act of 1974, which allows the US government to investigate and impose tariffs or other trade restrictions on countries it believes engage in unfair trade practices or violate trade agreements.
Meanwhile, Rosa said Brazil expects the United States to announce the outcome of a separate investigation related to alleged forced labour practices involving multiple countries. He added that Braslia remains open to dialogue and expects further contact from the US administration.
The Brazilian minister also revealed that the United States had urged Brazil to limit investments by countries that do not comply with market rules in the rare earth minerals sector. Rosa rejected the proposal, saying Brazil would not accept restrictions on its investment policy.
The latest tariff measures mark a further deterioration in trade ties between the two countries, even as both governments maintain that negotiations remain possible.
Brazil's Trade Minister Mrcio Fernando Elias Rosa said that nearly 18 per cent of the country's exports to the United States, worth around $7 billion, will be subject to new 25 per cent US tariffs beginning next week, as trade tensions between the two countries deepen.
Speaking after Washington announced the new duties, Rosa said the Brazilian government was preparing measures to support industries expected to be hardest hit, including the timber, machinery, furniture and footwear sectors.
The tariffs follow a year-long investigation by the Office of the US Trade Representative (USTR), which concluded that Brazil engaged in what Washington described as unfair trade practices. The new duties are scheduled to take effect on July 22.
The United States has, however, exempted several products considered critical to supply chains or not widely produced domestically, including coffee, beef, oranges and orange juice, certain oil and gas products, and aerospace parts and components.
According to the USTR, the investigation found that Brazil maintained weak anti-corruption enforcement, imposed unfair tariffs of its own and adopted other practices deemed unreasonable. US Trade Representative Jamieson Greer said the tariffs were necessary to ensure fair competition for American businesses, while adding that Washington remained open to further negotiations.
TARIFFS UNJUSTIFIED: BRAZIL MINISTER
Brazilian Foreign Minister Mauro Vieira strongly criticised the US decision, describing the tariffs as unilateral and unjustified. Speaking in Braslia, he also condemned recent remarks by US Secretary of State Marco Rubio, who accused the Brazilian government of negotiating in bad faith, calling the comments "unacceptable."
Vieira also questioned Washington's reliance on Section 301 of the US Trade Act of 1974, which allows the US government to investigate and impose tariffs or other trade restrictions on countries it believes engage in unfair trade practices or violate trade agreements.
Meanwhile, Rosa said Brazil expects the United States to announce the outcome of a separate investigation related to alleged forced labour practices involving multiple countries. He added that Braslia remains open to dialogue and expects further contact from the US administration.
The Brazilian minister also revealed that the United States had urged Brazil to limit investments by countries that do not comply with market rules in the rare earth minerals sector. Rosa rejected the proposal, saying Brazil would not accept restrictions on its investment policy.
The latest tariff measures mark a further deterioration in trade ties between the two countries, even as both governments maintain that negotiations remain possible.
