Trump administration proposes 25% tariff to punish Brazil over trade practices

WASHINGTON, June 1 (Reuters) - The Trump administration has proposed a new 25% punitive tariff on many imports from Brazil after determining that the country's practices were unfair on digital trade, electronic payment services, preferential tariffs, intellectual property protection, ethanol market access and illegal deforestation.

The Office of the United States Trade Representative proposed the new duties, which exclude a number of items like beef, coffee, rare earths, other metals and aircraft parts, as it released the results of its unfair trade practices investigation into Brazil that started last year under Section 301 of the Trade Act of 1974.

The tariffs would partially replace a 50% tariff on many Brazilian goods imposed by U.S. President Donald Trump last year, with 40% as punishment for the country's prosecution of its former president, Trump ally Jair Bolsonaro. Those duties were struck down by the U.S. Supreme Court in February.