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May 13, 2025

Trump hits Brazil with 50% tariffs over Bolsonaro prosecution

Michael Lowell, Philippe Heeren, Justin Angotti, Lizbeth Rodriguez-Johnson, Kirsten Lowell, Courtney E. Fisher
Tax Foundation
Reuters
Reuters
Reuters
+9

Courts rule Trump's IEEPA tariffs exceed presidential authority; Supreme Court to decide

Trump imposed a 10% baseline tariff on Brazilian imports Apr. 2, 2025 as part of 'Liberation Day' tariffs covering nearly all countries, then added a 40% tariff on Brazil specifically Jul. 30, 2025 (cumulative 50% rate), citing Brazil's prosecution of former President Jair Bolsonaro for coup conspiracy alongside trade concerns (White House Executive Order 14323, Jul. 30, 2025).

USTR Jamieson Greer launched a Section 301 investigation into Brazil Jul. 15, 2025 examining six trade practices: digital payment services restrictions on US companies, preferential tariffs for competitors, anti-corruption enforcement, intellectual property protection, ethanol market access barriers, and inadequate illegal deforestation enforcement (USTR Press Release, Jul. 15, 2025).

The Court of International Trade ruled May 28, 2025 that Trump's IEEPA-based tariffs exceeded presidential authority, the Federal Circuit affirmed that ruling 7-4 on Aug. 29, 2025, and the Supreme Court granted certiorari Sep. 9, 2025 with oral arguments held Nov. 5, 2025—meaning tariffs remain in effect pending final decision but could trigger hundreds of billions in refunds if struck down (Federal Circuit Opinion, Aug 29, 2025).

Brazil responded with its Economic Reciprocity Act (Law 15,122) signed Apr. 14, 2025, giving President Lula authority to impose countermeasures on US imports, investment, and intellectual property without WTO authorization, with a Jul. 14, 2025 decree enabling immediate retaliation targeting US pharmaceutical patents and digital services (Brazilian Government, Apr. 14, 2025).

Trump exempted 694 Brazilian products worth $18.4 billion (43.4% of bilateral trade) from the 50% tariff on Aug. 6, 2025—including orange juice, Embraer aircraft, oil, and minerals—then removed an additional 238 agricultural classifications including coffee and beef on Nov. 13, 2025 after industry complaints about consumer price increases (White House Executive Order, Nov. 13, 2025).

🛡️National Security📋Public Policy💰Economy

People, bills, and sources

Donald J. Trump (President of the United States)

Invoked IEEPA to declare trade deficits a national emergency and imposed 10% baseline tariff Apr. 2025 plus 40% additional tariff on Brazil Jul. 2025, issued 694 product exemptions Aug. 2025 and removed coffee/beef tariffs Nov. 2025

Jamieson Greer (United States Trade Representative)

Confirmed by Senate Feb. 26, 2025; initiated Section 301 investigation into Brazil Jul. 15, 2025 covering digital trade, preferential tariffs, ethanol access, IP protection, anti-corruption, and deforestation practices

Luiz Inácio Lula da Silva (President of Brazil)

Signed Economic Reciprocity Act Apr. 14, 2025 and issued Jul. 14, 2025 decree implementing countermeasure authority targeting US imports, investment, and intellectual property

Jair Bolsonaro (former President of Brazil)

Charged with coup conspiracy Feb. 2025 for allegedly plotting to assassinate President Lula and remain in power after losing 2022 election; Trump cited Bolsonaro's prosecution as partial justification for 50% tariff

What you can do

1

Track the Supreme Court IEEPA tariff case to understand whether presidents can use emergency powers for trade policy: The Supreme Court heard oral arguments Nov. 5, 2025 in *Trump v. V.O.S. Selections* challenging the president's authority to impose tariffs under the International Emergency Economic Powers Act. The Court's decision will determine whether hundreds of billions in tariffs are refunded and whether future presidents can declare trade deficits a national emergency. Read the Federal Circuit's Aug. 2025 opinion explaining why IEEPA doesn't authorize tariffs: https://www.cafc.uscourts.gov/opinions-orders/25-1812.OPINION.8-29-2025_2566151.pdf

2

Monitor USTR's Section 301 investigation into Brazil to see if permanent retaliatory tariffs replace the challenged IEEPA tariffs: USTR Jamieson Greer opened a Section 301 investigation Jul. 15, 2025 examining six Brazilian trade practices including digital payment regulations and ethanol market barriers. Public comments closed Aug. 18, 2025 and a hearing was held Sep. 3, 2025. USTR typically announces findings within 12 months, meaning spring 2026 could bring new tariffs even if courts strike down existing ones. Follow the investigation at: https://ustr.gov/trade-topics/enforcement/section-301-investigations/section-301-brazils-acts-policies-and-practices-related-digital-trade-and-electronic-payment

3

Check if you paid tariffs on products later exempted and consider filing refund claims: Trump removed 238 agricultural product classifications including coffee and beef from the 50% tariff list on Nov. 13, 2025, authorizing CBP to refund duties collected after that date—but the order didn't provide refunds for the Jul.-Nov. period when importers paid the full rate. If you imported Brazilian products before tariff exemptions took effect, consult a customs attorney about preserving refund claims during the Supreme Court litigation. CBP refund procedures: https://www.cbp.gov/trade/refunds

4

Contact your senators to ask whether they support legislation limiting presidential emergency tariff authority: The Court of International Trade ruled that Trump's invocation of IEEPA for tariffs exceeded congressional intent, but Congress could clarify or restrict the statute. Senator Rand Paul (R-KY) was the only Republican to vote against confirming USTR Jamieson Greer, citing concerns about executive tariff authority. Ask your senators whether they'll introduce legislation requiring congressional approval for emergency tariffs that last beyond 90 days. Find your senators: https://www.senate.gov/senators/senators-contact.htm