The United States administration proposed a 25 percent tariff on imports from Brazil, invoking Section 301 of the Trade Act of 1974 as the legal basis. The tariff package targets electronic payment services, preferential tariffs, intellectual‑property protection and ethanol market access.

U.S. officials said the tariffs were motivated by concerns over deforestation and digital trade practices in Brazil.

Trade official Jamieson Greer said the United States decided Brazil's practices were unfair on a range of issues, according to the South China Morning Post. The U.S. Trade Representative concluded that a range of Brazilian policies are discriminatory, reported by the Peterson Institute for International Economics.

Brazilian President Luiz Inácio Lula said he received the U.S. decision with indignation, as reported by The Guardian, and added that he blamed the decision on his rival in the October elections, also according to The Guardian.

PIX, Brazil's central‑bank‑owned instant payment platform that processes most digital payments for Brazilians, has been cited by U.S. credit‑card companies as discriminating against them, according to the Peterson Institute for International Economics.