Brazil has vowed to retaliate against the US decision, with President Luiz Inácio Lula da Silva’s office describing the move as a “regrettable milestone” in the history of relations between the two countries. The Brazilian government said the decision was influenced by pressure exerted on the White House by the family of former far-right President Jair Bolsonaro.
Once the new tariffs take effect, Brazil will become the second most heavily tariffed country by the United States after China.
US Trade Representative Jamieson Greer said a USTR investigation found that Brazil provides tariff concessions to India and Mexico that are not available to the United States, creating less favourable market access conditions for American exporters, according to news agency ANI.
US officials stated that the unequal tariff treatment has affected American exports to Brazil. They claimed that US exports to Brazil have declined while exports from India and Mexico have increased.
“What we would expect from the Brazilians is that they give us this type of preferential tariff treatment as well. We are a big trading partner for them. We do want to be able to compete on the best terms, like some of these other countries,” Greer said.
The preferential concessions offered by Brazil to India and Mexico cover several sectors, including agricultural products, motor vehicles and auto parts, minerals, chemicals, and machinery.
Jennifer Thornton, General Counsel at the USTR, said the preferential arrangements cover “hundreds of tariff lines for India” and “over 1,000 tariff lines for Mexico.” The tariff reductions range between 10 per cent and 100 per cent below Brazil’s most-favoured-nation tariff rates that apply to US goods.
Meanwhile, a bill proposing 100 per cent tariffs on five countries, including India and China, over purchases of Russian oil was introduced in the US Senate on Thursday. The proposed legislation excludes European nations purchasing Russian gas from similar measures and has received support from more than 60 lawmakers.
The bill was introduced by Democratic Senator Richard Blumenthal and late Republican Senator Lindsey Graham. Blumenthal said on Tuesday that the proposed legislation aims to impose 100 per cent tariffs on five major purchasers of Russian oil — China, India, Slovakia, Hungary, and Azerbaijan.
These countries are among the largest buyers of Russian crude oil or natural gas, adding another layer of geopolitical and economic pressure amid ongoing global trade disputes.
The tariff dispute between the United States and Brazil highlights growing tensions over trade policies, market access, and international economic partnerships. With Brazil preparing retaliatory measures and Washington moving forward with additional tariff actions, the developments could significantly impact trade relations between major global economies.
About The Author
Comment List