U.S. President Donald Trump meets with Brazilian President Luiz Inácio Lula da Silva in Kuala Lumpur, Malaysia, on Oct. 26, 2025. —Andrew Harnik—Getty ImagesThe United States’ decision to impose a new 25% tariff on many imports from Brazil has been labeled a “lamentable milestone” by the office of Brazilian President Luiz Inácio Lula da Silva.”The Brazilian government repudiates the decision announced today by the U.S. government,” the office said. “There is no justification for unilateral measures against our country.” The levies, introduced under Section 301 of the Trade Act of 1974, a tool that authorizes investigations into alleged unfair trade practices, were announced late Wednesday by U.S. Trade Representative (USTR) Jamieson Greer. “Unfair, preferential tariffs, anti-corruption interference, illegal deforestation” and "electronic payment services” were among the practices by Brazil deemed as “unreasonable” or a burden on American farmers and exporters, according to a statement from Greer’s office.“Brazil’s unfair trading practices have prevented U.S. workers and producers from accessing this important market with over 210 million consumers,” said Greer, arguing that the 25% tariffs were "necessary" to level the playing field.But Brazil has firmly rejected these findings, claiming the investigations based on Section 301 “is part of the plot built with the active collaboration” of the family of former Brazilian President Jair Bolsonaro. (Far-right populist Bolsonaro was given a 27-year prison sentence in 2025 for plotting a coup after losing the 2022 election to Lula. U.S. President Donald Trump referred to the trial as a "witch hunt.")“Brazil does not recognize the legitimacy of investigations without support in the multilateral rules of trade. Despite this, we have never left the negotiating table to defend national interests,”said Lula’s office.“The Brazilian government has acted tirelessly with the Office of the United States Trade Representative to end the investigations based on Section 301, presenting evidence that refutes each of the allegations regarding alleged unfair trade practices adopted by Brazil.”Brazil has vowed to retaliate, if the tariffs—first proposed in June and set to take effect on July 22—are enacted.“Brazil will immediately initiate the procedures to activate the instruments provided for in the Reciprocity Law, approved unanimously by the National Congress, and will resume the issue within the framework of the WTO [World Trade Organization] dispute settlement mechanism,” warned Lula’s office.The Reciprocity Law gives Brazil the ability to introduce countermeasures if foreign countries "violate trade agreements or deny benefits to Brazil under such agreements" among other scenarios.U.S. Secretary of State Marco Rubio accused Lula and his government of failing to negotiate in good faith after months of meetings. “Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that,” he argued.The tariffs against imports from Brazil include some notable exemptions, including beef, coffee, certain fruits, and aircraft parts. Brazil is the first country targeted under the Trump Administration's new approach to tariffs which focuses on the provision of Section 301 of U.S. trade law.The action comes after the Supreme Court dealt the Administration a major blow in February, ruling that most of Trump’s tariffs were illegal.The Justices had ruled that Trump lacked the authority to impose sweeping import taxes by claiming a national emergency. The ruling immediately invalidated a broad set of tariffs that Trump imposed last year on nearly all imports, including so-called reciprocal duties on dozens of countries and additional levies tied to the fentanyl crisis.The Trump Administration began refunding tariff payments, with an estimated $81 billion reportedly returned so far.The USTR had already announced the initiation of a Section 301-based investigation of Brazil’s “unfair trading practices” in July 2025.But after the Supreme Court ruling earlier this year, the Trump Administration said it would launch investigations under Section 301 “relating to structural excess capacity and production in manufacturing sectors” into a number of other economies, including China, Mexico, Japan, and the European Union.The actions taken against Brazil could be the first of many new tariffs announced by the Trump Administration as investigations continue.