Brazil Could Face Stacked U.S. Tariffs of Up to 37.5%, Group Warns

Brazil · Trade

Two separate U.S. trade actions, each significant on its own, could combine into one of the steepest tariff walls Brazil has faced, a leading business group cautions.

Certain Brazilian products could be subject to cumulative additional U.S. tariffs of up to 37.5%, the American Chamber of Commerce for Brazil, known as Amcham, said in a note this week. The figure would place Brazil among the most heavily taxed countries trying to sell into the U.S. market, and reflects the way two distinct Washington trade actions could land on the same goods at once.

How the stacked tariffs reach 37.5%

The first layer is a proposed 25% tariff announced on June 1, the result of a Section 301 investigation into what U.S. officials call Brazil’s unfair trade practices, spanning digital payments, ethanol access and other complaints. According to Brazil’s trade ministry, that duty would reach roughly 21% of the country’s export basket. The second layer is a 12.5% tariff stemming from a separate Section 301 case on forced labour that names about 60 countries. That action proposes two bands, 10% and 12.5%, and Brazil sits in the higher tier alongside economies including China, India and Japan. Stacked on the same product, the two measures sum to 37.5%.

Why the forced-labor case is contentious

The forced-labour investigation, opened in March, faults Brazil and the other named countries for failing to adequately bar and police the entry of goods made with forced labour into their own markets. Brazil has already sent a mission to Washington to present its domestic anti-forced-labour legislation, the penalties it carries and its enforcement record. But U.S. negotiators want exporting countries to police third-country supply chains as well, a demand Brazilian officials consider difficult to meet because it reaches across international supply chains and foreign legal systems.

The political backdrop

Both measures are still proposals and must pass through public consultation before any duty is imposed, leaving room for negotiation. President Luiz Inácio Lula da Silva called the U.S. treatment unacceptable in a ministerial meeting, saying Brazil expects respect in its international dealings. The dispute is the latest turn in a relationship that has been tense since 2025, when Washington imposed duties reaching as high as 50% on many Brazilian goods before a partial rollback earlier in 2026. For exporters, the prospect of a 37.5% combined rate is a reminder that the trade fight is widening on multiple legal fronts at once, even where individual measures are eased.