US Sets 25% Tariffs on Brazil Next Week as Australia Bends to a Separate Trade Threat

Brazil condemned a United States decision to impose 25% tariffs on a range of Brazilian products next week, The Guardian reported. The United States trade office cited an investigation into Brazilian trade practices, and Secretary of State Marco Rubio said the policies of President Luiz Inacio Lula da Silva were "bad for Americans and bad for Brazilians." Brazil's government rejected that description and called the measure coercive.

Separately, Australia moved to toughen its modern slavery penalties after a United States tariff threat, The Japan Times reported. The new law would create a criminal offense when companies with revenue above 70 million dollars fail to prevent forced labor and debt bondage in their supply chains.

The two cases show the same tool used in two ways. Against Brazil, the tariff is the penalty. Against Australia, the threat of one was enough to change a partner's domestic law.