The Office of the United States Trade Representative (USTR) announced on December 15th local time that, at the direction of President Trump, U.S. Trade Representative Grier took final action under Section 301 of the 1974 Trade Act to impose a 25% tariff on certain Brazilian goods. This decision followed a year-long investigation by the USTR. The investigation found that Brazil's actions in digital trade and electronic payment services, unfair tariff preferences, anti-corruption law enforcement interference, intellectual property protection, ethanol market access, and illegal deforestation constituted "unreasonable practices" that burdened or restricted the commercial activities of American farmers, workers, innovative businesses, and exporters. Grier stated: "Despite extensive negotiations between the U.S. and Brazil over the past year, these issues have not been resolved. The U.S. remains willing to continue negotiations with Brazil to address the issues identified in this investigation that have persisted long-term." The U.S. will exempt Brazilian beef and coffee from the new 25% tariff on Brazilian goods. (FXStreet)