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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• Brazil to seek new partners to reduce impact of new US tariffs.
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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.

Notícias relacionadas:

• “We should have raised the tariff,” Lula says on US policy.
• US government proposes new 25% tariff on Brazilian products.

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.