Brazil and US Resume Trade Talks Amid Tariff Disputes Impacting Over 23% of Exports

Brazil and the United States have resumed trade negotiations following the U.S. imposition of steep tariffs on Brazilian exports. This move comes after the Trump administration imposed a 25% tariff on several Brazilian products and an additional 12.5% tariff purportedly linked to forced labor concerns, affecting approximately 23.1% of Brazilian exports to the U.S. with some products facing combined tariffs of up to 37.5%.

The negotiations were reinitiated after a phone conversation on August 21 between Brazilian President Luiz Inácio Lula da Silva and U.S. President Donald Trump, in which Lula emphasized that the tariffs were unjustified. Brazilian officials, including Minister of Development, Industry, Commerce and Services Márcio Elias Rosa and Foreign Minister Mauro Vieira, are engaging with U.S. representatives such as Jamieson Greer from the Office of the United States Trade Representative (USTR).

Brazil challenges the 25% tariff, which targets sectors including electronic payments, ethanol, intellectual property, deforestation policies, and the Pix system, labeling it politically motivated and lacking reciprocity from the U.S. side. The 12.5% tariff was justified by the U.S. under claims of insufficient action against slave labor, a rationale Brazil contests as manufactured to replace a previously overturned tariff.

To counter the tariffs, Brazil has pursued formal actions through the World Trade Organization, arguing discrimination by the U.S., and invoked its Economic Reciprocity Law from 2025, enabling trade countermeasures although not automatically implementing retaliations. Brazil also initiated a reciprocity notification to the U.S. on August 13.

While Brazil is open to discussing reductions in tariffs on capital goods and ethanol policies, it remains firm on protecting key areas such as critical minerals and its PIX payment system. The Brazilian government anticipates slow progress with substantial agreements likely only after upcoming elections.

This tariff escalation is viewed as part of the Trump administration's broader strategy to assert influence in Latin America amid rising Chinese economic presence and to sway Brazil’s political landscape ahead of elections.