Politics7/25/2025Bloomberg

US Seeks New Legal Grounds for Trump’s Brazil Tariff Threat

The Trump administration is exploring new legal grounds to impose tariffs on Brazil, according to sources familiar with the matter. This move comes after the president threatened to impose tariffs on Brazilian steel and aluminum exports, citing concerns over the country's currency devaluation and its impact on US farmers. The administration is reportedly preparing a new emergency declaration that could serve as the legal basis for the tariffs. This suggests a shift from the previous justification, which relied on national security concerns under Section 232 of the Trade Expansion Act. The potential tariffs on Brazil are part of the ongoing trade tensions between the US and its trading partners. The administration's actions reflect its efforts to find alternative legal pathways to impose tariffs, even as the previous justifications face increasing scrutiny and legal challenges. The situation highlights the continued uncertainty surrounding US trade policy and the potential for further economic disruption, particularly for industries and sectors that rely on trade with Brazil.

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