Trump Keeps Brazil in Tariff Crosshairs After Court Blow

Hours after the Supreme Court dismantled the legal foundation of his tariff program, President Donald Trump signaled that Brazil remains firmly in the administration’s trade sights.

This is part of The Rio Times’ daily coverage of Brazil politics and Latin American financial news.

In a statement released Friday, U.S. Trade Representative Jamieson Greer confirmed that ongoing Section 301 investigations into Brazil and China will continue. The probe, launched in July 2025, examines a wide-ranging list of grievances: digital trade rules, Brazil’s Pix instant-payment system, preferential tariffs granted to other countries, ethanol market access, intellectual property protections, anti-corruption enforcement and illegal deforestation.

The timing was no accident. Earlier that day, the Supreme Court ruled 6–3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not authorize a president to impose tariffs, striking down the legal basis for the sweeping “Liberation Day” duties that hit Brazilian exports with rates up to 50% last year.

Trump moved within hours to rebuild his tariff wall using different statutes. He first imposed a 10% temporary surcharge on all imports under Section 122 of the Trade Act of 1974, then raised it to the maximum 15% on Saturday. That law caps the rate at 15% and limits it to 150 days unless Congress extends it.

Section 301, the tool being used against Brazil, carries no such cap on tariff rates but requires a full investigation with consultations and public hearings before duties can be imposed. Greer signaled the administration intends to accelerate that timeline. The USTR also announced plans to open new 301 probes covering most major trading partners, targeting pharmaceutical pricing, industrial overcapacity and discrimination against American tech firms.

Brazil’s government had not issued a formal response by Sunday. Brasília has previously rejected the allegations as unfounded, and a Brazilian industry group disputed claims that the country’s digital trade policies disadvantage American companies.

The picture for exporters is now a patchwork of overlapping authorities. Section 232 tariffs on steel, aluminum and copper remain at up to 50%. The new 15% blanket surcharge takes effect Monday. And the Section 301 investigation hangs over the bilateral relationship, with a determination expected sometime this year. For Brazilian businesses, the Supreme Court ruling eliminated one threat and clarified another: the tariffs are not going away, they are just changing legal clothes.

For more context, read Brazil’s Morning Call and the Latin American Pulse.

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