The Brazilian government is seeking a tariff agreement with the US that would prevent the White House from adopting the recommendation of the US Trade Representative (USTR), which suggests imposing an additional 25 percent tariff on some imports from Brazil.

The government believes it is possible, though difficult, to reach a compromise that is more advantageous for both countries than the 25 percent surcharge – because, among other reasons, the US has a trade surplus with Brazil.

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The USTR’s recommendation, announced last week, is the result of an investigation based on Section 301 of the US Trade Act. The argument used is that Brazil engages in “unfair” practices in trade relations.

Brazil countered that the claims are not valid and that the move stems from a bid to interfere in internal affairs and reflects Washington’s unilateral trade protectionism.

The government has been challenging the additional US tariffs, arguing that the average tariff applied by Brazil on US imports is 2.7 percent, which does not justify the claim that US companies would be disadvantaged in accessing the Brazilian market.

New deadline

Brazil is now working toward a July 15 deadline to reach a tariff agreement. That was the date set by the USTR for a decision on the matter. In theory, this deadline could still be extended.

As a result, Brazilian negotiators hope to gain more time, since the initial deadline set after the meeting between Presidents Luiz Inácio Lula da Silva and Donald Trump in Washington last month was 30 days, which ended on Sunday (Jun. 7).

Challenges

Among the challenges facing the negotiations is the fact that the US is involved in several other tariff talks around the world, in addition to the military conflict it is leading in the Middle East against Iran.

Meanwhile, the Brazilian government is assessing the advisability of a new meeting between Trump and Lula. The two may meet at the G7 summit in France from June 15 to 17. However, no bilateral meeting has been confirmed.

Another challenge in negotiating with the US is that Americans tend to have broad demands – multiple requests across different areas.

For now, Brazil is seeking an agreement specifically on tariff and trade issues, with other topics that might interest the Americans, such as rare earth metals, currently out of the picture. At the same time, the government states that Brazil’s popular instant payment system Pix is not part of any talks with Washington. The US insists that Pix harms US companies.

Slave labor

On the other hand, the additional 10 or 12.5 percent tariff imposed on 60 countries on the grounds that these nations do not effectively combat slave-like labor is viewed by the Brazilian government – which faces a 12.5 percent surcharge – as designed not to be negotiated.

Since this tax is imposed on much of the world, its primary aim is believed to be to reinstate, under new legal and argumentative grounds, the previous tariff that was overturned by the US Supreme Court.

In addition to Brazil, the new tariff affects Washington’s historic allies, such as Japan, the European Union, Canada, and India, as well as Argentina, led by Javier Milei, who has consistently sided with Donald Trump on international issues. It would raise the tax on some products sold to the US by 37.5 percent when added to the existing 25 percent tariff.

Brazilian President Luiz Inácio Lula da Silva stated Wednesday (Jun. 3) that Brazil will continue to seek new business partners to minimize the impacts of the trade policy adopted by the US. Lula chaired a ministerial meeting amid the announcement of new US tariffs on Brazilian products.

“We will seek out other partners. If they don’t want to buy, we’ll sell to whoever does. We won’t just sit around complaining. If they don’t want to invest here, we’ll look for someone else. Brazil is its own master. This is a democratic and sovereign country,” he told his cabinet ministers.

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On Monday (1), the US Trade Representative (USTR) proposed, among other measures, a 25 percent tariff on certain Brazilian goods imported by the US. The USTR report is the result of an investigation launched a year ago by President Trump’s administration into Brazil’s alleged “unfair trade practices” with the US.

Among other issues, to justify the measure, the agency accuses Brazil’s instant payment system Pix of “unfairly” harming US companies that provide electronic payment services – such as credit card operators MasterCard and Visa and WhatsApp Pay.

G7 summit

President Lula stated he will attend the G7 summit in June in France, which had not been part of his plans originally. The event brings together the leaders of Germany, Canada, the US, France, Italy, Japan, and the UK. Brazil will attend as a guest of the host, French President Emmanuel Macron.

“I wasn’t even going to the G7, but now I am. Someone needs to try to bring order to the house and stop this dismantling of multilateralism, democracy, and the devaluation of institutions. If the UN isn’t working today, we’re not going to fix the world by destroying the UN; we’re going to fix it by rebuilding the UN,” said Lula, reaffirming his support for strengthening the United Nations and reforming its Security Council.
 

Negotiations to finalize the free trade agreement between Mercosur and Canada advanced with a meeting of thematic groups in Toronto, Canada, from May 25 to 29. The 10th Round of Negotiations deepened discussions on the consolidation of the treaty, which had resumed in October of last year.

The highlight of the meeting was the in-person sessions held by technical groups on the trade in goods, services, and financial services; the temporary entry of business travelers; rules of origin; intellectual property; bilateral safeguards; sustainable development; inclusive trade; and legal and institutional issues.

In addition to the technical discussions, Canada’s Minister of International Trade Maninder Sidhu met with chief negotiators from Mercosur.

At the previous meeting, in late April, discussions focused on rules of origin, intellectual property, sanitary and phytosanitary barriers, and trade and sustainable development.

The parties expect to finalize the agreement at further meetings in the first half of the year, with dates to be determined.

Brazil and Canada

In 2025, trade between Brazil and Canada saw a significant increase after both countries were affected by trade barriers imposed by the US government. Bilateral trade reached USD 10.4 billion last year. Brazilian exports to the Canadian market totaled USD 7.3 billion in 2025 – a 14.8 percent surge over the previous year and a historic record for the series.

Mercosur

The resumption of bloc-level negotiations has been a priority for the current Mercosur administration, chaired by the Paraguayan government. The agreement with the European Union entered into force on May 1.

The bloc has also made progress in discussions with other Latin American countries, such as Chile, Ecuador, Colombia, and Peru, as well as in talks with the United Arab Emirates and the EFTA, comprising Iceland, Liechtenstein, Norway, and Switzerland.

Brazilian Foreign Minister Mauro Vieira will participate in Beijing this Monday (Jun. 1) and Tuesday (2) in the 5th Global Strategic Dialogue between Brazil and China – a mechanism that facilitates the exchange of global, regional, and bilateral agendas.

Minister Vieira is expected to meet with Chinese vice-President Han Zheng and Minister of Commerce Wang Wentao. The Brazilian foreign minister will also visit the National Museum of China, which is hosting events celebrating the Brazil–China Cultural Year.

According to the Ministry of Foreign Relations, China is Brazil’s largest trading partner. Trade between the two countries totaled USD 170.9 billion in 2025, with a surplus of USD 29 billion for Brazil, driven by exports of agricultural products.

Brazil and Suriname will begin negotiations in the second half of the year to expand their trade agreement and stimulate new business opportunities.

This rapprochement was one of the main focuses of the bilateral meeting between President Luiz Inácio Lula da Silva and Surinamese President Jennifer Geerlings-Simons, which took place on Thursday (May 28) in Brasília. Elected last year and serving a term until 2030, she is the first woman to lead the neighboring country.

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“Our trade is still very small and concentrated in a few products. In 2025, it was only 55 million dollars - that is, almost nothing. The only trade agreement we have is extremely limited. With this visit, we managed to approve terms of reference to increase trade flows between Brazil and Suriname,” Lula stated in a joint press statement at the Ministry of Foreign Affairs.

Bilateral trade includes machinery, electrical equipment, chemical industry products, and commodities, and is composed almost entirely of Brazilian exports. According to Lula, the negotiations should expand trade facilitation measures and include new sectors.

The Surinamese delegation’s program in Brasília includes a business meeting bringing together Brazilian entities and companies and representatives of Suriname’s productive sector in the areas of energy, logistics, transport, agriculture, and communications.

Critical oil and minerals

In recent years, Suriname has discovered significant offshore oil reserves in the region known as the Guiana Basin in the Atlantic Ocean, which are expected to boost the country’s economy in the coming years.

In 2024, Petrobras and the Surinamese state-owned company Staatsolie signed agreements on cooperation in oil, renewable energy, and safety in hydrocarbon exploration activities. Lula also recalled that, like Brazil, Suriname stands out for its potential in critical minerals, which are essential for the manufacture of electronic components for high-tech equipment.

“We have the opportunity to cooperate in sustainable mining, local industrialization, and value-added production, contributing to overcoming historical models based solely on the export of raw materials,” said the Brazilian president.

Food security

Another important area of bilateral cooperation is agriculture and food production. “Brazil can contribute significantly to the food and nutritional security of the Surinamese people through the supply of beef, pork, poultry, and other food products,” Lula emphasized.

Technical and scientific cooperation between the two countries was also the focus of agreements and memoranda of understanding signed during the meeting.

Jennifer Geerlings-Simons’ agenda in Brasília will also include a visit this week to a unit of the Brazilian Agricultural Research Corporation (Embrapa) for an exchange on expertise in family farming, food security, and sustainable agroforestry systems.

“For Suriname, lowering food costs and ensuring food security remain critical, and we are certain that Brazil is a partner we can trust to help us with this,” stated Geerlings-Simons.

Social programs

The President of Suriname will also visit a unit of the Social Assistance Reference Center (CRAS), the entry point to Brazilian government social programs, and a housing project under the Minha Casa, Minha Vida (My House, My Life) program, which could serve as inspiration for a model that Geerlings-Simons intends to take to the neighboring country.

“I think we agreed that the main task of every politician is to ensure that people can achieve the highest level of well-being. Furthermore, we discussed regional development issues and reaffirmed our shared commitment to democracy and regional integration,” added the Surinamese leader.

Signed agreements

In total, Lula and Jennifer Geerlings-Simons signed 13 cooperation agreements in sectors such as cybersecurity, police cooperation, combating human trafficking, public health, integrated fire management, hydroelectric dam security, and coordinated military operations in the Amazon border region.

The governments of Brazil and Suriname also discussed measures to expand maritime and air connections between the two countries and advance the so-called “Guiana Ring,” an integration project connecting northern Brazil to Guyana, Suriname, and French Guiana, facilitating access to the Caribbean market and strengthening regional infrastructure.

Brazilian exports of high-tech products grew 7.7 percent in 2025, but remain well below sales of low-tech goods, as per a survey released Tuesday (May 26) by the National Confederation of Industry (CNI).

High-tech products totaled USD 9.1 billion last year and accounted for just 2.7 percent of the country’s total exports. In contrast, low-tech products reached USD 130.7 billion, 37.5 percent of Brazil’s foreign sales.

The study was based on data from the Center for Foreign Trade Studies Foundation and indicates that high-tech exports remain 15 times lower than those of low-tech products.

Challenge

In a statement, CNI’s Trade and International Integration Manager Constanza Negri noted that this represents a challenge to the competitiveness of Brazilian industry.

“High-quality economic growth depends on progress in medium-to-high and high-tech sectors,” she stated.

Expanding the share of these sectors, Negri argued, is essential to diversify Brazil’s export portfolio and strengthen the international presence of domestic industry.

Manufacturing industry

The US remained the main destination for Brazilian manufacturing exports, despite a 4.2 percent decline in sales. Sales to the US market totaled BRL 30.2 billion.

China increased its purchases of Brazilian industrial products by 19.4 percent, totaling USD 22 billion in 2025. The food sector was primarily responsible for the growth in exports to the Asian country.

In terms of imports, China remained the leading supplier of industrial goods to Brazil, with sales of USD 70.6 billion.

Argentina

Brazilian exports to Argentina added up to USD 18.1 billion in 2025, up a 31.4 percent over the previous year.

This performance was driven by the auto sector, which recorded a 57.2 percent surge in sales to the Argentine market. Passenger vehicles, trucks, and auto parts led exports to the neighboring country.