Brazil Launches Consultation Process to Counter U.S. Tariffs

Brazil has launched a formal consultation process in response to a 50 percent U.S. tariff, signaling potential reciprocal measures while emphasizing dialogue.

Brazil explores countermeasures after U.S. tariff hike. Photo: @BRICSnTheWorld


August 30, 2025 Hour: 8:12 am

The Brazilian government has formally notified the United States of the start of a consultation process in response to Washington’s decision to impose a 50 percent tariff on Brazilian goods, a move Brasília has described as arbitrary.

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In an official communication, Brazil gave the country’s Foreign Trade Chamber (Camex) 30 days to assess the feasibility of invoking the Law of Reciprocity as a defensive trade mechanism. The measure would allow Brazil to impose equivalent counter-tariffs and other protective steps if the U.S. action is found to violate international trade principles.

A technical committee will be established to propose potential compensatory measures, which could include new duties and restrictions, particularly in the area of intellectual property. These measures would only be implemented if the investigation concludes that Washington’s tariff undermines fair-trade rules.

President Luiz Inácio Lula da Silva has signaled caution, stressing that while reciprocity remains an option, his administration does not intend to apply it immediately. Lula emphasized that the process will be handled with restraint, underscoring his preference for dialogue—a contrast with the failed attempts to establish communication with the administration of Donald Trump.

Despite these diplomatic efforts, the United States went ahead with the tariff, justifying it on political grounds. Washington linked the decision to judicial proceedings against former president Jair Bolsonaro, who faces trial before Brazil’s Supreme Court for his alleged role in the attempted coup.

The tariff escalation comes amid broader political tensions. Trump has openly promoted sanctions against Supreme Court Justice Alexandre de Moraes, who oversees Bolsonaro’s case, accusing him of “restricting freedom of expression.”

What was once considered a stable diplomatic relationship between Brazil and the United States has given way to growing disputes, with trade measures now reflecting deeper political frictions.

Author: MK

Source: TASS - AP