US proposes 25% tariff on Brazil over trade practices

Key facts

• The U.S. has proposed a 25% tariff on Brazil.
• The proposed U.S. tariff on Brazil is under Section 301.
• Brazil has until July 15 to respond to the proposed U.S. tariff.
• The U.S. has threatened a 12.5% tariff on Costa Rica.
• The U.S. tariff threat on Costa Rica cites failure to prohibit forced labor goods.
• Costa Rica has until July 6 to submit comments on the U.S. tariff threat.
• President Donald Trump is reportedly working on a new tariff system.
• A court ruling invalidated previous U.S. trade levies.
• Brazil launched a subsidized credit program for app-based delivery drivers to buy motorcycles.
• The Brazilian motorcycle credit program offers 11.5% annual interest for women.
• The Brazilian motorcycle credit program offers 12.5% annual interest for men.
• Brazil's credit program aims to boost demand before October elections.

The United States has proposed a 25% tariff on Brazil, invoking Section 301 of the Trade Act of 1974. This action stems from allegations that Brazil's trade practices are unreasonable and cause harm to U.S. commerce. Brazil has been given a deadline of July 15 to respond to the proposed tariff before a final decision is rendered.

In a separate action, the U.S. has threatened a 12.5% tariff on goods originating from Costa Rica. The justification for this potential tariff is Costa Rica's alleged failure to prohibit the import of goods produced with forced labor, which is also cited as detrimental to U.S. commerce. Costa Rica has until July 6 to submit its comments on the matter.

These proposed tariffs follow a court ruling that invalidated previous trade levies imposed by the U.S. In response, President Donald Trump is reportedly working to establish a new system of punitive tariffs. The aim is to create tariffs that are legally sound and better equipped to withstand future legal challenges.

Concurrently, Brazil has introduced a subsidized credit program designed to assist app-based delivery drivers in purchasing motorcycles. This program offers annual interest rates of 11.5% for women and 12.5% for men. The initiative is intended to boost demand for motorcycles in the lead-up to the October elections.