The Trump administration proposes a 25% tariff to punish Brazil for its trade practices.

By David Lauder

- The Trump administration is proposing new punitive tariffs of 25 percent on much of the imports from Brazil, U.S. Trade Representative Jamison Greer said on Monday, after finding its practices unfair on a range of issues such as digital trade and illegal deforestation.

The Office of the United States Trade Representative stated that the measures, which come under Section 301 of the Trade Act, cover areas such as electronic payment services, preferential tariffs, intellectual property protection, and access to the ethanol market.

The administration proposed the new tariffs as it announced the results of an investigation into Brazil’s unfair trade practices, which began last year under Section 301 of the 1974 Trade Code.

But it excluded some goods, such as beef, coffee, rare metals and other minerals, and aircraft parts, from the new tariffs.

The Office of the United States Trade Representative said in a statement that Brazil's practices in the areas investigated were "unreasonable and impose a burden or restriction on U.S. trade, and are therefore suable under Section 301(b) of the Trade Act."

These tariffs will partially replace the 50 percent tariffs imposed by Trump last year on many Brazilian goods, 40 percent of which were a penalty for Brazil's trial of its former president, Trump ally Jair Bolsonaro.

However, the US Supreme Court overturned those fees in February.

Trump used the same law to impose sweeping tariffs on Chinese goods during his first term.

The Office of the United States Trade Representative has several other open investigations under Section 301 that are expected to result in new tariffs.

Regarding the results of the Brazil investigation, the Office of the United States Trade Representative said the proposed new 25 percent tariffs would not apply to Brazilian imports subject to national security-related tariffs under Section 232 of the Trade Expansion Act of 1962.