The announcement was given at the end of the Day of Marjory, following an investigation by the American Trade Commissioner's Office, which accused Brazil of participating in "methy" commercial activities and "the burden or commercial restrictions of the US".

Tax-based planning ruled out more than half of the import value from Brazil, including aircraft and important minerals. The US Trade Representative's office will hold a public hearing on July 6, on proposed tax levels.

Earlier, President Trump had cited Article 301 of the 1974 Trade Act to launch an investigation into the commercial activities of the 10th largest economy.

American Trade Representative Jamieson Greer stated that he and President Donald Trump conducted "constructive" meetings with President Lula and Brazilian officials but that "there are still significant differences" in solving the issues identified in the investigation.

  • American Tradelor Jamieson Greer at the White House August 26, 2025. Image: AFP*

The Brazilian president Luiz Inkáio Lula da Silva stated that he welcomed this decision "with indignation" and threatened retaliation. He claimed that the U.S. authorities made a move after a visit to Washington last week by Senator Fávio Bolsonaro.

Mr. Flávio Bolsonaro was the son of former President Jair Bolsonaro, his close ally Trump, who would at the same time compete against the Brazilian president in the October election. The Brazilian government said that the dialogue with American partners, including the participation of President Lula and President Trump, is being "infested only by election issues and Bolsonaro families".

The U.S. has had years of acquisition commercial surplus with the largest American Latin economy. At 2025, the export to Brazil increased nearly 11% to 54,4 billion dollars, while in the opposite dimension dropped $5,7%, and 39,9 billion, which meant that the US had more commercial surplus than $14 billion.

Last year, the U.S. taxed 50% on Brazilian imports, protesting the country's prosecution of former President Jair Bolsonaro. Trump's relationship with Lula improved in early May.