Flavio Bolsonaro opposes U.S. tariff plan on Brazilian goods

Flavio Bolsonaro urged U.S. trade officials to delay a proposed 25 percent tariff on Brazilian goods until after Brazil’s October election, filing an 86-page appeal on July 2. Bolsonaro used his filing to argue that any tariff move should wait until after Brazil’s general election on October 4, with a runoff on October 25 if needed. He warned that imposing the duties now would inject Washington into a political moment in Brazil, where he plans to challenge Luiz Inacio Lula da Silva.

The U.S. Trade Representative held public hearings on the proposed responsive action in Washington on July 6 and July 7, after opening the Section 301 case over Brazil’s acts, policies and practices tied to digital trade and electronic payment services, unfair preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access and illegal deforestation. On June 1, USTR determined that certain Brazilian practices were actionable under Section 301 and proposed the tariff package, with public comments due July 1 and a final decision expected by July 15. The USTR docket showed at least 40 associations and companies registered to attend the hearings.

The trade dispute has also turned on Pix, Brazil’s instant-payment system. Brazil’s Central Bank created Pix. It lets people, companies and government entities send or receive transfers in seconds at any time, including non-business days. The Brazilian government rejected the U.S. allegations in its formal response and defended Pix as a public payment rail, not a discriminatory barrier. Bolsonaro backed that position, saying Pix is a solution rather than a problem.

The proposed U.S. tariff package would exempt beef, coffee, rare earths, other metals and aircraft parts, but it could still hit major sectors such as footwear and fishing. The United States Cattlemen’s Association testified in favor of strong, comprehensive tariffs on Brazilian beef.