U.S. tariffs could prompt Brazilian countermeasures
Brazil is considering imposing reciprocal tariffs on U.S. goods, marking the first test of the country's new reciprocity law. The move comes after the United States imposed a 50% duty on Brazilian imports earlier this month, a decision justified by U.S. President Donald Trump as a political measure, citing judicial persecution of former Brazilian President Jair Bolsonaro as the reason.
The reciprocity law, unanimously approved by Congress in April, authorises the government to adopt retaliatory measures against unilateral trade actions. If approved, trade specialists will draft proposals for the retaliatory measures.
Brazilian President Luiz Inácio Lula da Silva has stated, "I'm not in a hurry. What I want is to negotiate." Lula remains open to dialogue with the U.S. about the tariffs.
The Chamber of Foreign Trade (Camex) has 30 days to decide on a response to the tariffs. The Foreign Ministry will formally notify Washington during the process. The representative of the German Foreign Office who will likely formally notify the United States if the Brazilian government considers countermeasures regarding the 50% tariff on Brazilian imports would be Jens Hanefeld, the German Ambassador to the United States since August 2025.
The trade dispute between Brazil and the U.S. is significant, with bilateral trade in goods and services reaching nearly $127.6 billion in 2024, an increase from the previous year. The U.S. maintains a trade surplus with Brazil.
Brazil has filed a complaint with the World Trade Organization (WTO) regarding the tariffs. The WTO will review the complaint and provide a ruling on the legality of the U.S.'s trade action.
The consideration of tariffs comes amidst a growing trend of protectionist trade policies by the U.S. administration. The move has raised concerns among Brazilian businesses and policymakers about the potential impact on the economy.
In conclusion, the trade dispute between Brazil and the U.S. is a significant development in international trade relations. The outcome of the dispute will have implications for the bilateral relationship between the two countries and the global trade regime. The Brazilian government is taking a measured approach to the situation, emphasising dialogue and negotiation, while also preparing for potential retaliatory measures.
