US Imposes 10% Tariff on Brazilian Goods Sparking Trade Tensions and Potential WTO Dispute in 2025
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US Imposes 10% Tariff on Brazilian Goods Sparking Trade Tensions and Potential WTO Dispute in 2025
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Listeners, the U.S. government under President Trump recently announced significant changes to tariff policy that directly impact Brazilian exports. As of April 2, the United States imposed an across-the-board 10% tariff on all Brazilian goods entering the American market. The Brazilian government responded promptly, calling the move a violation of WTO commitments and warning of its impact on Brazilian exporters. According to an official press release from Brazil’s foreign ministry, these tariffs come on top of existing surcharges applied to steel, aluminum, and automobiles. The government emphasized that, despite the new tariffs, the U.S. already enjoys a significant trade surplus with Brazil—about $7 billion in goods last year, with the combined goods and services surplus reaching $28.6 billion, making Brazil the U.S.’s third-largest surplus partner globally. In response, Brazilian authorities are exploring options for reciprocity and possible action at the World Trade Organization, while urging continued dialogue to reverse these measures as soon as possible.
This tariff hike is part of President Trump’s so-called reciprocal tariff strategy, which he described during a Rose Garden address. Trump explained the U.S. will apply a “minimum baseline tariff of 10%” on nearly all imported goods and, in some cases, will set tariffs based on rates and trade barriers faced by American products abroad. He framed these measures as necessary to restore fairness and balance in international trade, but trade experts and fact-checkers note that the percentages cited in administration materials often include not just tariffs but non-tariff barriers, making direct comparisons challenging. FactCheck.org has highlighted that many of the figures used to justify the new tariff rates are higher than official WTO averages, as they combine items like “currency manipulation” and ambiguous trade impediments.
More granularly, steel and aluminum exports from Brazil now face an even tougher environment. On June 4, President Trump escalated existing tariffs on all steel and aluminum imports—excluding those from the UK—from 25% up to 50%. The stated motivation is to protect critical U.S. industries from what is described as unfair trade practices and global overcapacity.
Despite these policy headwinds, trade between Brazil and the U.S. remained robust in early 2025. The Brazil-U.S. Trade Monitor by the American Chamber of Commerce showed a record $20 billion in bilateral trade for the first quarter, a 6.6% increase over last year. However, leaders like AMCHAM CEO Abrão Neto warn that these tariffs could threaten the positive momentum and urge Brazilian policymakers to negotiate for exemptions and broader market access.
That wraps up today’s Brazil Tariff News and Tracker. Thanks for tuning in, and don’t forget to subscribe to stay on top of every new development. This has been a quiet please production, for more check out quiet please dot ai.
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