The United States has announced a 25 percent tariff on Brazilian imports, scheduled to take effect next week. This decision stems from allegations that Brazil has engaged in unfair trade practices affecting the U.S. economy.

The tariff targets a wide range of Brazilian products. Notably, it excludes major exports such as oil, gas, beef, coffee, oranges, and aircraft components. However, Brazilian ethanol will be subject to the new tariff, as highlighted by a senior official in the administration.

In response, a Brazilian government representative implied that Brazil might consider its own countermeasures.

The U.S. had previously imposed a 40 percent tariff on Brazilian exports the preceding year. President Trump later reduced some tariffs following discussions with Brazilian President Luiz Inácio Lula da Silva. In February, the Supreme Court ruled against Trump’s use of an emergency law to implement these tariffs, leading to their removal.

While a temporary 10 percent tariff was placed on most imports, it is set to lapse this month. Meanwhile, the administration used Section 301 to investigate Brazil’s trade practices, which serves as the basis for the upcoming tariff. The use of Section 301 may also result in additional tariffs on other countries in the future.