U.S. Secretary of State Marco Rubio announced a new 25% tariff on selected Brazilian goods, set to take effect July 22, and accused President Luiz Inácio Lula da Silva of prioritizing personal pride over reaching an agreement and not negotiating sincerely. Brazil’s government immediately rejected the claim, stating it had remained at the bargaining table, and countered that 76% of American imports enter Brazil duty-free with an average applied tariff of just 3.1%. Officials said they would pursue retaliatory tariffs and take the matter to the World Trade Organization. The U.S. holds a large trade surplus with Brazil—exports exceeded imports by nearly $42 billion last year—making the target unusual. The dispute could influence Brazil’s October presidential election, where Lula is expected to face Flavio Bolsonaro, who echoed Rubio’s criticism.