U.S. Confirms 12.5% Tariff on Brazilian Products Over Forced Labor Allegations

On September 23, the U.S. Trade Representative (USTR) officially confirmed new import tariffs on 60 countries accused of benefiting from forced labor products. Brazil is singled out with the highest tariff rate of 12.5%, applied due to its failure to effectively prohibit imports linked to forced labor. This tariff will come into effect at 1:01 AM Brasília time on September 24, with exemptions for certain goods such as oil, gas, and food.

Alongside this, Brazil is already subject to a separate 25% tariff from ongoing investigations into unfair trade practices, potentially pushing total tariffs on Brazilian exports to 37.5%. The effective tariff on Brazilian goods has thus surged sharply from 11% to 17.7%, marking Brazil as the most adversely impacted by these U.S. trade adjustments, according to an analysis by Global Trade Alert cited by the Financial Times.

Other nations like China, Russia, and South Africa also face the 12.5% tariff, whereas countries such as Canada and the UK are subjected to a lower 10% tariff. Some strategic products are exempted, and goods in transit until September 28 will not incur additional charges.

The Brazilian government has publicly rejected the U.S. tariff and announced plans to initiate reciprocal measures under its Law of Reciprocity. To support impacted industries, Brazil has deployed R$ 18.5 billion in credit assistance through the Brazil Sovereign Plan and is actively negotiating responses to the tariff impositions.

These new tariffs follow a U.S. Supreme Court decision invalidating previous broad tariffs, pushing the Trump administration to tailor rates under Section 301 of U.S. Trade Law based on countries’ enforcement actions against forced labor imports. Experts suggest that this country-specific approach complicates legal challenges against the tariffs.