New 25% Tariff on Brazil Spares Beef, Other Key Agricultural Imports

Progressive Farmer’s Chris Clayton reported that, “the Trump administration announced 25% tariffs on a range of Brazilian products, including ethanol, but the U.S. currently imports virtually no Brazilian ethanol, while agricultural products such as beef and coffee were exempted from the new tariff action handed down late Wednesday.”

“Among the actions U.S. Trade Representative’s Office (USTR) cited were Brazil’s restrictions on U.S. ethanol market access and illegal deforestation, arguing the country’s actions ‘are unreasonable and burden or restrict commerce of American farmers, workers, innovators, and exporters,’” Clayton reported. “The action comes after USTR held hearings earlier this month on Brazil.”

Reuters’ Devika Madhusudhanan Nair and Shubham Kalia reported that, “the new tariffs, which are expected to take effect on July 22, could eventually ensnare countries from ​India and China to the EU, Japan and South Korea as President Donald Trump seeks a trade reset after the U.S. Supreme Court struck down a previous round of ​global levies.”

“Wednesday’s announcement by the USTR office follows months of fruitless negotiations and over 30 meetings between U.S. and Brazilian officials after the Trump ⁠administration proposed new tariffs on many imports from Brazil in June, saying its practices were unfair on a range of issues from digital trade to illegal deforestation,” Reuters reported.

“The Brazil ​tariffs would apply to thousands of imports, ⁠including sugar, agricultural machinery, apparel, electrical machinery, paper and steel,” Reuters reported. “Still, the U.S. said it would exempt all the products proposed for exemption in the June notice, except high-purity dissolving pulp and non-pharmaceutical applications of certain products, and include hundreds of others that were expected to face levies, such ​as pig iron and unflavored instant coffee.”

AgroLatam’s Marcus Ellington reported that, “for the agricultural sector, the implications could be far-reaching. Brazil is a global powerhouse in products such as sugar, soybeans, coffee and beef, while the United States remains one of its largest competitors across several commodity markets.” 

Cattle Groups Call for Beef Tariffs

“But industries cited by Brazil’s critics as being responsible for illegal deforestation, such as cattle ranching, were largely unharmed by the Trump administration’s announcement,” Clayton reported. “Beef, which is being imported in record numbers from Brazil, was among the products excluded from the tariffs, as President Trump has increased beef imports from South America as one strategy to lower American grocery prices.”

“Through May, Brazil exported roughly $1.175 billion in beef to the U.S., up 20% from the same five months of last year. Brazil exported a record $1.66 billion in beef to the U.S. in 2025,” Clayton reported. “U.S. cattlemen’s groups have been united in calling for punitive tariffs on Brazilian beef, citing deforestation and documented reports of forced labor as reasons for imposing tariffs.”

“’Exempting the principal derivative of cattle from the proposed 25% tariff action would substantively undermine the Trade Representative’s objective of eliminating the improper acts, policies, or practices contributing to illegal deforestation in Brazil,’ said Bill Bullard, CEO of R-CALF USA,” Clayton reported. 

’Exempting the principal derivative of cattle from the proposed 25% tariff action would substantively undermine the Trade Representative’s objective of eliminating the improper acts, policies, or practices contributing to illegal deforestation in Brazil.’

Investigation Findings Could Yield Further Tariffs

The New York Times’ Ana Swanson and Ana Ionova reported that, “the Trump administration initiated an investigation into Brazil’s trade practices last July under a different law, known as Section 301, which is what it will use to impose the tariff next week.”

“Brazil is also included in a separate U.S. investigation related to alleged forced labor links in global supply chains, with findings expected later this month,” Ellington reported. “Should additional duties be imposed, total tariffs on affected Brazilian products could rise to 37.5%. Such an outcome would represent one of the most significant trade escalations in recent years and could reshape global agricultural competitiveness, investment decisions and long-term export strategies for both countries.”

“In a statement, the Brazilian government sharply criticized the U.S. tariff,” The New York Times reported. “‘There is no justification for unilateral measures against our country,’ the government said. It also said it planned to take countermeasures and seek a resolution through the World Trade Organization. The new tariff is likely to become a political issue in Brazil before the presidential election in October.”