U.S. to Send Trade Proposal to Brazil Within Two Weeks
Washington is preparing to deliver a formal "term of reference" to negotiate down the steep tariffs imposed on Brazilian goods in July 2026.
American companies exporting machinery, auto parts, and chemicals to South America may soon see a shift in the cost of doing business. The United States government is preparing to deliver a formal trade proposal to Brazil within the next two weeks, aiming to break a diplomatic deadlock over import duties that has weighed on bilateral commerce.
On November 3, 2026, Márcio Elias Rosa, Brazil's Minister of Development, Industry, and Commerce, confirmed that Washington will transmit a formal "term of reference" expressaorondonia.com.br. This document will outline the specific economic sectors where the U.S. is seeking tariff concessions from Brazil imirante.com. Once received, the Brazilian government plans to formulate its own counter-proposals to establish a potential bilateral trade agreement expressaorondonia.com.br.
The upcoming proposal is the direct result of a high-level bilateral meeting held in the United States on September 30, 2026 expressaorondonia.com.br. During those talks, American trade representatives agreed to draft the framework within three to four weeks expressaorondonia.com.br. Minister Elias Rosa noted during a seminar in Brasília that because the four-week mark has arrived, the Brazilian government expects the document to land on its desk between this week and next expressaorondonia.com.br.
The negotiations follow a period of heightened trade friction between the two nations. In July 2026, the U.S. government imposed a series of steep tariffs on Brazilian goods, including a 25% surcharge under Section 301 and an additional 12.5% tariff linked to forced-labor enforcement ground.news. According to official statements from the Brazilian Ministry of Development, Industry, Trade, and Services, these combined measures affected approximately 23.1% of Brazil's total exports to the U.S. ap7am.com. This is a slight revision from the initial assessment published on July 17, 2026, by the Ministry of Development, which estimated that the first round of tariffs would hit 18% of exports, translating to roughly $7 billion in annual trade.
While Brazil initially contested the U.S. measures at the World Trade Organization (WTO), both countries are now focusing on a negotiated settlement expressaorondonia.com.br. For global investors, the outcome of these talks will determine the regulatory and tariff barriers for key industrial sectors. A successful negotiation could lower import costs for American industrial exporters while easing the retaliatory tariff risks that have hovered over Brazilian manufacturers.
