Trump proposes 25% tariff on Brazilian imports
What's the story
The Trump administration has proposed a 25% punitive tariff on several Brazilian imports. The move comes after the US government found Brazil's practices unfair in areas like digital trade, electronic payment services, preferential tariffs, intellectual property protection, ethanol market access, and illegal deforestation. The Office of the United States Trade Representative (USTR) made the proposal as part of its investigation into Brazil's trade practices under Section 301 of the Trade Act of 1974.
Exclusions
Proposed tariffs would not apply to several Brazilian products
The proposed tariffs would not apply to a number of Brazilian products, including beef, coffee, rare earths and other metals, as well as aircraft parts. The move is seen as a revision of the 50% tariff on several Brazilian imports that was imposed by US President Donald Trump last year. That penalty was levied in response to Brazil's prosecution of its president and Trump's ally Jair Bolsonaro.
Legal challenge
US Supreme Court overturned last year's 50% tariff in February
The 50% tariff imposed last year was overturned by the US Supreme Court in February. The court's decision came after a legal challenge against the hefty penalties on Brazilian imports. Now, with this new proposal, the Trump administration is looking to impose a more targeted punishment for Brazil's alleged unfair trade practices.