Washington proposes 25% trade tariff to punish Brazil

Agencies WASHINGTON

The Trump administration has proposed a punitive tariff of 25% on many imports from Brazil, after determining that the country’s trade practices were unfair regarding issues ranging from digital trade to illegal deforestation, top trade official Jamieson Greer said on Monday.

The measures, under the Section 301 trade statute, cover areas including electronic payment services, preferential tariffs, intellectual property protection and ethanol market access, the Office of the United States Trade Representative said. The proposed tariff, subject to public consultation ahead of a July 15 deadline, would exclude items such as beef, coffee, rare earths, other metals, energy and aircraft parts.

The Office of the United States Trade Representative said its investigation into Brazil, started last year under Section 301 of the Trade Act of 1974, found practices that are unreasonable and burden or restrict US commerce. Greer, speaking on CNBC, called the action "quite nuanced" due to the broad exemptions. He added that the trade agency will release findings of several more unfair trade practices investigations in coming weeks, noting that substantial tariffs were necessary to correct a large US trade deficit.

Two Brazilian officials familiar with the matter suggested the justifications for the tariff ignored arguments presented by Brasilia, indicating the motives may be political. Despite a White House visit last month by President Luiz Inacio Lula da Silva, bilateral relations have turned chilly.