A 25% US tariff on most Brazilian goods took effect on July 22, with the Lula government choosing not to retaliate immediately despite pressure from Vice President Alckmin and industry; Brazil's government says it sees no chance of negotiation before elections in both countries, and analysts note the tariffs are paradoxically strengthening President Lula against Flávio Bolsonaro in the upcoming Brazilian elections
The largest US bilateral trade corridor in South America, worth US$127.6 billion in 2024, is under acute strain from Trump-era tariffs and a June 2026 USTR Section 301 action.
full dossier ›The US announced a 25% tariff on most Brazilian imports under Section 301, after a yearlong investigation concluded Brazil had engaged in unfair trade practices; a separate forced-labor probe could add 12.5% more within days; Brazil formally condemned the move and vowed to retaliate
Six active US-led tariff confrontations, from the US-China axis to the US-Brazil standoff, are redrawing supply chains and testing every major economy's alignment.