The Donald Trump administration has moved to impose 25% tariffs on Brazil, where the United States runs a trade surplus, citing unfair trade practices. Brazilian President Luiz Inacio Lula da Silva pushed back, calling it a political step linked to the family of pro-Trump former president Jair Bolsonaro.

According to the AP on the 2nd (local time), the Office of the United States Trade Representative (USTR) the previous night released the ‘Determination under Section 301 of the Trade Act on unfair acts, policies, and practices by Brazil’. The determination recommends imposing a 25% tariff across Brazilian goods.

USTR has been conducting a Section 301 investigation of Brazil, citing inadequate enforcement of anti-corruption laws and unfair tariffs by Brazil. Section 301 is a provision that authorizes the president to take retaliatory measures, such as imposing tariffs without a cap or setting import quotas, in response to discriminatory or unreasonable practices by foreign governments that burden or restrict US trade.

President Lula said he was “angry” about the decision. He argued that Senator Flavio Bolsonaro was behind the move by the Trump administration. The son of former president Jair Bolsonaro, often called the ‘Trump of South America’, he visited Washington recently ahead of the October election. After the visit, the Trump administration designated two Brazilian criminal organizations as terrorist groups.

The Brazilian government said in a statement, “Dialogue between the two countries is being obstructed by the electoral and family interests of the Bolsonaro family.” It added, “We hope the recommendation does not lead to actual tariffs,” while also stating, “We will take every possible measure to reduce potential damage to the national economy and to the jobs and incomes of the Brazilian people.”

Last year, after former president Bolsonaro came under investigation for allegedly plotting a coup following his defeat in the 2022 presidential election, President Trump responded by imposing 50% tariffs on Brazilian products.

The United States has recently recorded a goods trade surplus with Brazil. According to USTR data, last year US exports to Brazil rose 10.9% to $54.4 billion (about 83 trillion won). In contrast, exports from Brazil to the United States fell 5.7% to $39.9 billion (about 61 trillion won), leaving the United States with a trade surplus of more than $14.0 billion (about 21 trillion won).