The United States is imposing 25% tariffs on imports from Brazil, having determined that the world’s 10th-largest economy engaged in a series of unfair trade practices.

The tariffs, initially proposed last month, are set to take effect on July 22.

The order exempts certain goods not produced domestically or those deemed by officials as likely to disrupt supply chains.

Exempted items include coffee, beef, oranges and orange juice, select oil and gas energy products, as well as aerospace parts and components.

Following a yearlong investigation, the Office of the U.S. Trade Representative determined that Brazil engaged in various unfair trade practices, such as weak anti-corruption enforcement and its own unfair tariffs, along with other measures deemed unreasonable and unfair.

However, the U.S. has maintained a goods trade surplus with Brazil for years.

U.S. Trade Representative Jamieson Greer stated that the measure was essential to guarantee that American workers and businesses can compete on an equitable basis.

"Extensive negotiations with Brazil over the past year have not resolved these issues, but we remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," he said.

Following early June warnings from U.S. officials that tariffs were being proposed, Brazilian President Luiz Inácio Lula da Silva reacted with indignation.

He instead attributed the move to political motives, blaming his rival in the country’s October elections, Sen. Flávio Bolsonaro.

Bolsonaro had recently visited Washington and is the son of former President Jair Bolsonaro, an ally of President Donald Trump.

Secretary of State Marco Rubio stated in a post on X regarding the tariff announcement: “Let there be no confusion about why: President Lula and his administration have failed to negotiate with the US in good faith.

His economic policies are detrimental to both Americans and Brazilians.

Over the past year, Lula has prioritized his own ego over reaching an agreement for the benefit of the Brazilian people, and these tariffs represent the cost of that failure.”

The tariffs are being imposed under Section 301 of the Trade Act of 1974, which authorizes the United States to initiate an investigation into Brazil's trade practices.

In February, the U.S. Supreme Court ruled against several of Trump's tariffs imposed under a separate statute, the International Emergency Economic Powers Act (IEEPA) of 1977.

The court determined that he had exceeded his authority under that act by imposing sweeping tariffs on U.S. trading partners, including Brazil.

Under that law, Trump had imposed a 50% tariff on Brazil in protest of its prosecution of Jair Bolsonaro for attempting to overturn his defeat in the 2022 election.

However, Trump’s relationship with Lula appeared to improve in May, when Lula visited the White House.