US targets $7.4 billion of Brazilian commodities

US targets $7.4 billion of Brazilian commodities
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Online Desk

Published: 2026-07-17 20:06:56

The Brazilian government has formally denounced a new 25 per cent US import tariff on selected national goods, labelling the penalty unjust and politically motivated.

Officials in Brasilia have warned that the country may introduce strong reciprocal duties on American products in response.

The trade penalties were announced by Washington on Wednesday and are scheduled to take effect next week.

The new measures target approximately 3,000 distinct commodities. However, the Office of the US Trade Representative has exempted critical items to avoid widespread supply chain disruptions.

These crucial exemptions cover major trade goods, including Brazilian coffee, beef, oranges, orange juice, and sophisticated aircraft components.

Industry Minister Marcio Elias Rosa confirmed on Thursday that the trade barrier impacts roughly 18 per cent of national exports to the United States.

Based on verified economic figures from 2024, the newly restricted trade is worth an estimated 7.4 billion dollars.

The administration of President Luiz Inacio Lula da Silva has completely rejected Washington's claims regarding unfair trade practices.

Brazilian officials noted that 76 per cent of American imports entered Brazil entirely duty-free during 2025. Furthermore, the average effective tariff applied to US products sat at a modest 3.1 per cent.

Foreign Minister Mauro Vieira issued a strong critique of US Secretary of State Marco Rubio, who had accused the Brazilian leader of failing to negotiate in good faith.

The foreign minister described those specific remarks as highly offensive to the nation.

Vieira simultaneously reaffirmed Brazil’s ongoing commitment to open bilateral dialogue while firmly defending its economic sovereignty.

Despite recent trade assertions originating from the White House, the United States has historically maintained a robust trade surplus with Brazil.

Official data shows this specific trade surplus reached nearly 42 billion dollars over the course of last year.

Prominent Brazilian industrial groups have warned that the unexpected tariffs will rapidly increase financial uncertainty for businesses operating across both borders.

Independent trade analysts suggested that the penalties will likely force Brazil to accelerate its current efforts to diversify major export markets well beyond the United States.