U.S. cites Brazil as an example of trade imbalances
03/05/2025
The Donald Trump administration has once again raised concerns over high import tariffs in Brazil, even as it implements new tariffs of 25% on products from Mexico and Canada and 10% on Chinese goods, further disrupting the global economy.
The Office of the U.S. Trade Representative (USTR) submitted Trump’s 2025 Trade Policy Agenda to Congress on Monday (3), along with a report on the country’s activities within the World Trade Organization (WTO), an institution increasingly sidelined by Mr. Trump’s unilateral approach.
The Trump administration argues that for decades, the U.S. “gave away its leverage by allowing free access to its valuable market without obtaining fair treatment in return.” This, it claims, has weakened the country’s industrial base, middle class, and national security.
It also blames the WTO for failing to reduce disparities in global trade. To illustrate the imbalance, the U.S. report compares its bound tariff rate of 3.4%—with an applied rate of 3.3% in 2023—to those of other nations. Brazil’s bound tariff was 31.4%, with an applied rate of 11.2%, while India’s stood at 50.6% and 17%, respectively. A bound tariff is the maximum rate a country can impose under WTO agreements.
“Going forward, the United States will take action to create the leverage needed to rebalance our trading relations and to re-shore production, including, but not limited to, through the use of tariffs,” said Jamieson Greer, the newly appointed U.S. Trade Representative. “This will raise wages and promote a strong national defense.”
He added, “The current moment demands action to put America First on trade, and the Trade Agenda explains the importance of President Trump’s trade policy to American workers and businesses.”
The Trump administration claims much of the country’s industrial power has shifted overseas, stalling innovation. It points to a decline in U.S. manufacturing jobs from 17 million in 1993 to 12 million in 2016, the closure of over 100,000 factories between 1997 and 2016, and a trade deficit in goods exceeding $1 trillion.
For Mr. Trump’s team, the culprit is clear: “These trends are the product of a withering, decades-long assault by globalist elites who have pursued policies—including trade policies—with the aim of enriching themselves at the expense of the working people of the United States. As a result, the middle class has atrophied, and our national security is at the mercy of fragile international supply chains.”
The USTR asserts that only Mr. Trump has recognized the role trade policy has played in this situation and how it can be corrected—specifically through tariffs as a “legitimate tool of public policy” to counter foreign products.
“He has demonstrated the imperative for tough trade enforcement against countries who think they can take advantage of the United States and get away with it,” the document said. “He has shown that the United States has leverage and can negotiate aggressively to open markets for Made in America exports, particularly for agricultural exports.”
The USTR also said it would identify opportunities for trade agreements that could expand market access for U.S. exports “and reorient the trading system to promote U.S. competitiveness.”
A major focus remains China, described as “the single biggest source of our country’s large and persistent trade deficit and a unique economic challenge.” The report makes clear that pressure on Beijing will continue to intensify.
“The U.S. is still a superpower,” the Trump administration asserted, adding that “from this moment on, America’s decline is over.”
The administration is also reviewing the impact of WTO agreements on U.S. interests, as well as the costs, benefits, and overall value of continued participation in the organization. It criticizes what it calls the WTO’s “persistent systemic failures” and the “intransigence of certain WTO members” that have prevented the U.S. from fully benefiting from the institution.
Targeting China, the report claims the WTO has been ineffective in addressing non-market policies and practices, enforcing agreed rules, implementing reforms, or fostering meaningful negotiations—without acknowledging the U.S.’s own role in these challenges.
The Trump administration signals that its patience is wearing thin, warning that the political, economic, and trade landscape in 2025 is vastly different from previous years. It insists the U.S. will continue pursuing “new paths” in global trade.
Mr. Trump’s unilateralism and intimidation tactics remain as forceful as ever, leaving trade partners with a stark choice: comply with U.S. demands or face retaliation.
*By Assis Moreira — Geneva
Source: Valor International