The Office of the U.S. Trade Representative on July 15 imposed a 25 percent tariff on most Brazilian goods under Section 301 of the Trade Act of 1974. The duties take effect on July 22, with more than 2,100 exempt tariff classifications covering beef, coffee, oranges, and civil aircraft parts.
The investigation specifically targeted Brazil's Pix instant payment system, alleging that the Central Bank of Brazil has favored the state-run rail over American card networks and electronic payment providers. USTR Jamieson Greer stated the action was necessary because a year of negotiations had failed to resolve U.S. concerns across six areas, including digital trade and electronic payment services.
Brazil announced it would invoke its Economic Reciprocity Law, enabling the government to raise tariffs, suspend trade concessions, and adopt countermeasures.