The United States (US) has imposed a 25% tariff on several Brazilian imports after completing a year-long investigation into alleged unfair trade practices. However, Brazilian beef and coffee are exempt from the tariffs.
The Office of the US Trade Representative (USTR) announced that the action was taken under Section 301 of the Trade Act, which allows the US President to impose tariffs if there is evidence of unfair trade practices.
According to the USTR, Brazil's trade policies allegedly make it difficult for US companies and manufacturers to penetrate the Brazilian market, which has more than 210 million consumers.
US Secretary of State, Marco Rubio, said President Donald Trump ordered the tariffs because the Brazilian government allegedly did not negotiate honestly with the US. He also criticized Brazil's economic policies, which are considered to be of no benefit to both countries.
In response, the Brazilian government rejected the action and announced that it would use economic reciprocity laws to protect its interests.
Brazil also insisted that it had cooperated with the USTR throughout the investigation and provided evidence that no unfair trade practices had occurred.
The Brazilian government described the US decision as a unilateral action that has no solid basis and warned that the move could affect trade relations between the two countries.
