U.S. Weighs Tariffs Over Brazil Trade and Forests
Published Date: 6/4/2026
Notice
Summary
The U.S. is taking a closer look at Brazil’s rules on digital trade, tariffs, and environmental issues like illegal deforestation. They’re thinking about adding tariffs on some Brazilian goods but want your thoughts first! If you’re a business or just interested, get ready to share your ideas by early July 2026.
Analyzed Economic Effects
7 provisions identified: 0 benefits, 7 costs, 0 mixed.
Preferential Tariffs Favor Mexico and India
USTR found Brazil gives lower tariff rates—10% to 100% lower than Brazil’s MFN rates—on hundreds to over a thousand tariff lines for Mexico and India. In 2025, imports under these commitments totaled about $5.9 billion ($4.7 billion from Mexico, $1.3 billion from India), including $1.8 billion in motor vehicles and parts from Mexico versus $1.0 billion from the United States.
IP Delays, Counterfeits Hurt Innovators
USTR found Brazil’s IP protection and enforcement pose harms to U.S. innovators through weak anti‑counterfeiting, lengthy patent examination times, and widespread piracy. The notice cites average patent examination times of 38.4 months in Brazil versus 29.5 months in the United States, and biopharmaceutical pendency of about 54 to 63.6 months (with some reported as long as 109.7 months).
Brazil’s Ethanol Tariffs Cut U.S. Exports
USTR found Brazil abandoned reciprocal ethanol treatment and now uses a duty‑free TRQ of 600 million liters with imports above that subject to a 20% tariff; Brazil set ethanol tariffs at 18% since February 2023 and can change them monthly. U.S. exports to Brazil fell to $96 million in 2025, an 87% drop from a $761 million peak in 2018.
Illegal Deforestation Undercuts U.S. Producers
USTR found that Brazil’s weak enforcement against illegal deforestation lets agricultural and timber products linked to illegal land conversion enter global markets and depress prices for U.S. producers. The notice cites estimates such as a 7–16% reduction in prices for legally sourced timber and that Brazil exported about $19 billion in forest‑risk commodities in 2019; it also notes 91% of Amazon deforestation was illegal between 2023 and 2024.
Secret Take‑Down Orders Hurt U.S. Platforms
USTR found that secret Brazilian court orders have forced U.S. social media companies to remove political content, suspend profiles, and face huge penalties. Examples include X being barred from operating in Brazil from August to October 2024 and paying a $5 million fine to restore access, and Rumble being suspended in Brazil since February 2025.
Brazil’s Pix Rules Favor Local Payment System
USTR found Brazil’s central bank gives its instant payment system Pix special treatment that disadvantages U.S. electronic payment providers. The bank requires institutions with more than 500,000 accounts to use Pix, mandates Pix appear on apps with no less prominence than other payment functions, encourages free Pix use for individuals, and caps business fees.
Weak Anti‑Corruption Enforcement Harms U.S. Firms
USTR determined that Brazil’s enforcement against foreign bribery and corruption is insufficient and disadvantages U.S. companies seeking trade and investment. Brazil scored 34 on Transparency International's Corruption Perceptions Index in 2024 and 35 in 2025, and the OECD and other bodies have criticized Brazil’s enforcement record and slow judicial proceedings.
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