US-Brazil Tariff Dispute

The United States is replacing its expiring 10% global tariff with new country-specific duties of up to 12.5%, a shift that will affect nearly all American imports beginning Friday. The new rates, announced by Trade Representative Jamieson Greer, take effect at midnight US time as the blanket 10% levy — a 150-day stopgap imposed in February after the Supreme Court struck down part of President Donald Trump's earlier tariff framework — reaches its deadline.

The tariffs, grounded in Section 301 of the Trade Act of 1974, target roughly 60 countries and territories over what Washington calls inadequate enforcement against forced labour. Japan and Norway face the maximum 12.5% rate, while Canada and the European Union are set at 10%, keeping the EU below a 15% ceiling agreed in bilateral trade talks.

The move drew sharp criticism from allies. Norwegian Foreign Minister Espen Barth Eide disputed the forced-labour justification, saying Norway is adopting the same regulations as the EU and calling the tariff disparity unreasonable.

Brazil will not retaliate against new U.S. tariffs but will instead invoke a reciprocity law to correct what it calls trade injustices, Vice President Geraldo Alckmin said on Monday after Washington imposed 25% duties on Brazilian goods.

An "eye for an eye" approach would leave both countries blind, Alckmin said, adding that Brasilia will pursue public hearings under the reciprocity framework and continue dialogue with Washington and U.S. companies operating in Brazil. The U.S. duties affect roughly 18% of Brazilian exports to the United States, or about $7.4 billion, with a further 12.5 percentage-point increase possible by July 24 over forced-labor allegations.

The government's response rests on three pillars: financial support for affected companies, market diversification and engagement with domestic industries. Trade agency ApexBrasil will launch a 130-million-real diversification plan in August targeting India, Mexico, Singapore, Japan and Southeast Asian nations. The 25% surcharge also applies to goods already in transit from July 29.

U.S. President Donald Trump is preparing to impose new tariffs on imports from up to 60 countries this week, as a temporary global 10% duty on all imports is set to expire Friday. The proposed levies, ranging between 10% and 12.5%, are tied to a U.S. investigation into forced labor practices. Among the countries covered by the probe are the European Union, China, Japan, India, Mexico and several Southeast Asian nations.

The broader action follows Trump's decision Monday to sign proclamations imposing a 50% tariff on a range of Canadian goods, from wine to cement, taking effect in about a month. Canadian Prime Minister Mark Carney said his government has submitted detailed proposals to resolve the dispute, while Ontario Premier Doug Ford urged retaliation. Trump has also hit Brazilian imports with a 25% tariff.

Advisers have warned Trump that the tariff escalation risks an economic shock ahead of the midterm elections. The U.S. Supreme Court earlier this year struck down a portion of Trump's reciprocal tariffs introduced in April 2025.

Eduardo Bolsonaro, the son of former Brazilian President Jair Bolsonaro, received permanent US residency on July 20, 2026, a grant that arrives during heightened diplomatic friction between Washington and Brasília.

The green card was issued under the EB-1A category, reserved for individuals of extraordinary ability. The decision came less than a week after President Trump imposed a 25% tariff on Brazilian products. Eduardo Bolsonaro has lived in the United States since February 2025 and began the residency process roughly a year ago.

Back in Brazil, he was sentenced by the Supreme Federal Court to four years and two months in prison for coercion during judicial proceedings related to his father's case, along with an eight-year ban on holding public office. Jair Bolsonaro was separately sentenced to more than 27 years for an attempted coup following his 2022 election defeat. Eduardo Bolsonaro had also reportedly influenced the application of US Magnitsky Act sanctions against Brazilian public figures, including Supreme Court Justice Alexandre de Moraes.