World

US imposes 25% tariffs on Brazilian goods, raising concerns in the footwear industry

Jul 20, 2026 Brazil

The US will impose a 25% tariff on several Brazilian goods, including footwear, from the 22nd of July, following a year-long investigation into trade practices the US administration considers to be unfair

Jamieson Greer, the US Trade Representative, announced that under Section 301 of the Trade Act of 1974, the country will impose a 25% tariff on certain Brazilian goods, including footwear, furniture, ethanol, machinery and sugar. The new tariffs are scheduled to take effect on the 22^nd of July, just two days before the temporary 10% global tariff imposed by Trump is due to expire.

The decision follows a year-long investigation by the Office of the United States Trade Representative (USTR), which concluded that Brazil’s policies regarding digital trade, intellectual property, access to the ethanol market, anti-corruption enforcement and tackling illegal deforestation place an unreasonable burden on American farmers, workers, innovators and exporters.

Brazilian President Luiz Inácio Lula da Silva described the tariffs as unjustified, stating that Brazil would invoke its Reciprocity Law and challenge the measures through the World Trade Organization. Brazilian officials have privately suggested that the tariffs are politically motivated, which makes negotiations difficult.

Haroldo Ferreira, the Executive President of the Brazilian Footwear Industries Association (Abicalçados), states that the decision represents a step backwards for a trade relationship that has been built up over decades.

“This additional tariff significantly reduces the competitiveness of Brazilian footwear in the United States and renders many operations unviable – operations that had resumed since the additional 40% tariff was lifted in February this year”.

Having attended the public hearing held by the USTR on the 7^th of July, he added that “this measure penalises not only Brazilian exporters, but also US importers, brands, retailers, and consumers, given the interdependence of production and trade between the two countries”.

Those who spoke out against the tariff on Brazilian footwear included representatives from the Footwear Distributors and Retailers of America (FDRA), the American Apparel & Footwear Association (AAFA) and the United States Fashion Industry Association (USFIA), as well as US importers and retailers such as JPT Group LLC, Bernardo Footwear and Dillard’s Inc.

Abicalçados has revised its export forecast for 2026, now expecting a 7.1% decline in total footwear exports, down from a previous projection of a 3.6% drop.

Image Credits: reuters.com

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