U.S. Commerce Chief Demands Brazil ‘Fix’ Amid US Trade Surplus

The report on NewsNation revealed that US Commerce Secretary Howard Lutnick urged Brazil, India and Switzerland to “fix” their trade practices.

He argued that these nations must open markets and stop actions that harm American interests. Lutnick warned they must follow US rules to maintain market access.

Official data shows the United States holds a persistent trade surplus with Brazil. Since 2009, the US surplus has exceeded US$ 90.2 billion. In 2024, American exports to Brazil outpaced imports by US$ 28.6 billion.

Moreover, recent figures confirm this trend continued into 2025. Between January and August, the US surplus reached US$ 3.48 billion. In August alone, that surplus totaled US$ 1.23 billion.

However, Secretary Lutnick contends that Brazil, India and Switzerland maintain trade barriers that disadvantage US exporters.

He faulted Brazil for imposing high tariffs on industrial and agricultural goods, enforcing complex local content rules and granting generous subsidies to state-owned companies that undercut American competitors.

He criticized India’s steep duties on technology and pharmaceutical imports and its restrictive market-access requirements.

He also singled out Switzerland’s currency interventions and tax incentives for multinational firms, which he says allow Swiss exporters to underprice US products.

Lutnick insists these policies block fair competition, not actual US disadvantage, and he urged these governments to remove such obstacles if they wish to sell freely in the US market.

Tariff measures began in August 2025 when the US introduced a 50 percent duty on Brazilian products. Consequently, exports of targeted goods fell by 22.4 percent that month. Overall, Brazilian shipments to the US dropped 18.5 percent.

Furthermore, new US tariffs will range from 25 percent to 100 percent starting October 1 on drugs, trucks and furniture. These levies will affect several major US trading partners. Observers expect further export declines under this policy shift.

Industry data reveals deeper economic integration between Brazil and the United States. In 2024, intra-company trade between multinationals in both countries accounted for 33.7 percent of bilateral commerce. That figure equals roughly US$ 31 billion in transactions.

Regional impacts have emerged within Brazil’s export hubs. Seven states supplying over 80 percent of exports to the US—mostly pro-Bolsonaro regions—feel significant effects from the tariffs. These states include São Paulo, Rio de Janeiro and Paraná.