Brazil Enacts ‘Reciprocity Law’ in Response to Trump’s Tariff Hike
Brazilians mock U.S. tariffs and Trump’s support for his protégé, Bolsonaro. X/ @GBAFReview
July 15, 2025 Hour: 1:00 pm
It outlines protection procedures the Brazilian government must follow to respond to unilateral measures or trade barriers.
On Monday, Brazilian President Lula da Silva signed a decree regulating the Reciprocity Law, which was approved by Congress in May. The law allows Brazil to adopt countermeasures in response to the 50% tariff increase announced by U.S. President Donald Trump.
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The decree outlines the economic protection procedures the government must follow to respond to unilateral measures or trade barriers imposed by partner countries that restrict Brazilian exports.
Initially, President Trump justified the tariff hike as a response to what he claimed was Brazil’s large trade surplus with the United States — a claim strongly contradicted by the U.S. government’s own statistics.
Later, however, the Republican leader cited the legal proceedings against former Brazilian President Jair Bolsonaro — the far-right leader currently facing prosecution for attempting to stage a coup d’état — as a justification for his trade war.
Brazil’s Chief of Staff Rui Costa stated that the Reciprocity Law authorizes the executive branch to adopt measures to “protect the country when other nations impose untimely and extraordinary unilateral measures” that harm exports.
The decree regulating the law calls for prior diplomatic consultations, coordinated by the Ministry of Foreign Affairs, to seek a negotiated resolution to disputes before countermeasures are implemented.
On Monday, the Lula administration also announced that it would begin discussions with Brazilian exporters to the United States about both the scope of the tariff imposed by Trump and ways to overcome the trade restrictions.
Talks with business leaders began Tuesday, when Vice President and Minister of Development, Industry and Trade Geraldo Alckmin met with representatives from economic sectors most closely tied to the United States.
Brazil maintains that the U.S. has enjoyed a favorable trade balance in the bilateral relationship for roughly 15 years, and views Trump’s tariffs as having a clearly political motivation.
Currently, the United States is the destination for 12% of Brazilian exports. In 2024, Brazil exported US$40.3 billion in goods and services to the U.S., while imports from the U.S. totaled US$40.5 billion.
teleSUR/ JF
Source: EFE
