As described in our prior client alert, President Trump threatened in July to impose tariffs of 50% on imports of products from Brazil in response to U.S. concerns regarding Brazil’s criminal prosecution of former President Jair Bolsonaro, recent judicial developments impacting social media regulation in Brazil, Brazil’s allegedly unfair trade practices, and Brazil’s support for BRICS policies that the Trump Administration has deemed to be “anti-American.” President Trump recently followed through on these threats by issuing Executive Orders (“EOs”) imposing cumulative tariffs against Brazil under the International Emergency Economic Powers Act (“IEEPA”). Separately, the United States took additional measures against certain Brazilian Supreme Court judges, primarily targeting the judge overseeing the Bolsonaro trial. In addition, the Office of the U.S. Trade Representative (“USTR”) is conducting an investigation of Brazil’s unfair trade policies under Section 301 of the Trade Act of 1974 (“Section 301”), which may result in the imposition of additional U.S. tariffs or other trade measures against Brazil. These measures may have significant implications for U.S. and Brazilian companies reliant on bilateral trade, as well as affect U.S. companies operating in Brazil and Brazilian companies operating in the United States.
Click here to read the full alert on cov.com.