Brazil’s government has formally launched the process to assess retaliatory measures against US tariffs, with President Luiz Inacio Lula da Silva authorizing trade body Camex to analyze whether the country’s reciprocity law can be deployed against Washington.
The move, announced on August 13, represents the most significant escalation yet by Latin America’s largest economy in response to President Donald Trump’s 50 percent tariffs on Brazilian imports. Brazil had previously limited its response to filing dispute consultations at the World Trade Organization.
Reciprocity Law Activated
Brazil’s Foreign Ministry ordered Camex, the government’s foreign trade chamber, to begin analyzing the case under the Economic Reciprocity Law passed by Congress earlier this year. The law establishes a legal framework for Brazil to respond to unilateral trade measures targeting its goods and services.
A process will be initiated. Congress passed the law almost unanimously. It’s an important and necessary instrument. – Vice President Geraldo Alckmin
Vice President Geraldo Alckmin confirmed the decision during a trip to Mexico City, adding that Brazil remains open to talks with the Trump administration. ‘I hope this helps accelerate dialogue and negotiation,’ he said.
30-Day Window for Decision
Camex now has 30 days to present a report on whether the US tariffs qualify for retaliatory action under the reciprocity law. If the body approves its use, a government working group will determine which specific sectors Brazil should target in its countermeasures.
The US imposed the 50 percent tariffs on Brazilian imports earlier this year, with Trump citing unfair trade practices and accusing Brazil of a ‘witch hunt’ against former President Jair Bolsonaro, who is on trial for allegedly plotting a coup. Products such as orange juice and aircraft, major Brazilian exports, were exempted from the higher duties.
Brazilian industry groups have urged caution, with the National Confederation of Industry warning that reciprocal tariffs could cost the country at least 110,000 jobs and negatively impact GDP. An Amcham survey found that 86 percent of Brazilian companies believe reciprocal action would worsen bilateral tensions.
The tariff dispute adds another layer of tension to the already complex US-Latin America relationship, which has been strained by Washington’s military expansion across the region and ongoing disputes over Venezuela, Colombia and trade policy.
Sources: Reuters via Yahoo Finance; Courthouse News; Argus Media
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