The United States will impose 25 percent tariffs on most Brazilian imports, effective later this month, the U.S. Trade Representative’s office announced Wednesday. Once the new tariffs take effect, Brazil will become one of the most heavily tariffed major U.S. trade partners after China.

• This marks the first major move in the Trump administration’s tariff strategy since the Supreme Court’s ruling against its prior broad impositions. With the International Emergency Economic Powers Act now off the table for unilateral tariffs, the administration is invoking Section 301 of the Trade Act of 1974.

Brazil’s trade practices are unreasonable, the U.S. government is arguing—spanning anti-corruption enforcement, digital trade, electronic payment services, ethanol market access, illegal deforestation, intellectual property protection and preferential tariffs.

• The new tariffs will apply to Brazilian imports including agricultural machinery, clothing, electrical machinery, paper, sugar and steel.
• Certain exports in demand in the U.S. will be exempt, including aircraft parts, beef, coffee, energy products, organic honey, pig iron and rare earths.

Brazilian President Luiz Inácio Lula da Silva called the move a “lamentable milestone” in bilateral ties and accused the Trump administration of collaborating with the family of former President Jair Bolsonaro against his government.

Meanwhile, the European Union is offering Brazil a “more beneficial” partnership on critical minerals than the U.S. or China.

• The EU signed a trade deal with Mercosur (Argentina, Brazil, Paraguay and Uruguay) on January 17, which is being implemented provisionally and aims to create one of the world’s largest free-trade zones, covering a market of over 700 million people.
• The European Council also adopted the decision to formally conclude the Interim Agreement on Trade between the EU and Mexico on Tuesday, opening the door for closer EU-Mexico relations.

Bible prophecies describe America being economically besieged by foreign enemies (Deuteronomy 28; Isaiah 23; Ezekiel 27). America cannot be besieged unless Latin America and its maritime choke points are out of its control. That is why the late Herbert W. Armstrong forecast that the alliance between Europe and Latin America would strengthen. For more information on why God is allowing this to happen, read “Germany Unites the World Against America,” by Trumpet editor in chief Gerald Flurry.