The US government is moving to reshape its trade relations with Latin America following an official proposal by the Office of the United States Trade Representative (USTR) to impose flat 25% tariffs on a large portion of imports from Brazil. This development, resulting from a months-long investigation under Section 301 of the US Trade Act, has put international analysts and building material importers on high alert, as Brazil has historically been one of the most critical suppliers to the US market.
The Institutional Framework and Rationale Behind the Decision
According to the report by the USTR and its head, Jamieson Greer, the proposed tariffs come in response to Brazilian practices deemed “unreasonable” and restrictive to US commerce. US grievances focus on digital trade issues, market access conditions for ethanol, as well as deficiencies in enforcing environmental regulations (deforestation) and intellectual property protections.
Utilizing “Section 301” provides Washington with a more solid legal foundation compared to previous attempts to impose sweeping 50% tariffs. Those earlier measures were struck down by the US Supreme Court last February for exceeding presidential authority.
The Exclusion List and the “Quartz Puzzle”
The USTR proposal is accompanied by a multi-page exclusion list specifying tariff codes (HTS codes), aimed at preventing severe inflationary pressures on critical US infrastructure and the domestic market. While broad categories such as crude oil, aircraft, and core food products are exempt, the natural stone and hard surfaces sector requires careful attention from industry professionals, as it mandates different treatment per material:
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Natural Quartzite -> EXEMPTED: The only category of natural stone included in the exclusions is HTS code 6802.99.00 (Other Stone). This means that popular natural Brazilian quartzite will avoid the 25% tariff, and its flow into the US will continue uninterrupted.
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Engineered Quartz -> SUBJECT TO 25% TARIFF: Unlike natural stone, engineered quartz (agglomerated stone) falls under different tariff codes in Chapter 68, which are not included in the exclusions. Consequently, imports from Brazil will be fully subject to the tariff.
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Granite, Marble, and Slate -> SUBJECT TO 25% TARIFF: The remaining primary Brazilian stone products were left off the exclusion list. If the measures are finalized, importers of granite, marble, and slate will be required to pay the additional tariff.
Political Reactions and Trade Balance
Reaction from Brasília was immediate, with President Luiz Inácio Lula da Silva expressing strong dissatisfaction. The Brazilian side points out that the US already maintains a significant trade surplus (exceeding $14 billion) with Brazil, making the measures disproportionate. Furthermore, the Brazilian government has hinted at political motives behind the timing of the announcement, linking it to the broader geopolitical climate and Washington’s rhetoric.
Consultation Timeline
The measures have not yet taken effect, as the standard institutional process is being followed, serving as the final “window of opportunity” for industry businesses:
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Until July 1, 2026: Period for filing written comments and objections by interested parties (trade associations, importers).
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July 6, 2026: Public hearing to be held in Washington.
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July 15, 2026: Deadline for finalizing the decision.
The coming weeks are considered critical for business diplomacy. Brazilian exporters’ associations, in collaboration with US trade bodies, are expected to fully utilize the consultation windows to ensure that distribution channels for building materials and natural stones to North America do not suffer structural disruptions.
