Brazil initiates process to counter US tariffs under reciprocity law

Brazil begins a formal process to consider reciprocal measures against the US after Washington imposed new tariffs on Brazilian goods. This action falls under Brazil's Economic Reciprocity Law, though Brazil still prefers diplomatic dialogue.

The Brazilian government has initiated a formal process to assess possible reciprocal measures against the United States following tariffs imposed by Washington on Brazilian products, according to Brasil 247. The United States imposed a 25 per cent tariff on several Brazilian imports on July 22, followed by an additional 12.5 per cent forced-labor-related tariff. In response, Brazil initiated diplomatic consultations and exploratory retaliatory options under its Reciprocity Law

Brazil's Economic Reciprocity Law

As cited by Brasil 247, the move is based on Brazil's Economic Reciprocity Law, enacted in 2025 after being unanimously approved by Congress and signed by President Luiz Inacio Lula da Silva. The legislation empowers Brazil to respond to countries or economic blocs that impose trade, legal or political restrictions affecting Brazilian interests.

Government Initiates Review and Consultations

In a statement, the Brazilian government said it had begun examining whether the measures adopted by the US fall within the scope of the reciprocity law. The review concerns unilateral measures taken by Washington under Section 301 of the US Trade Act.

The Brazilian Foreign Ministry is also expected to formally inform the US government about the start of the process and seek diplomatic consultations. Brasilia said the consultations would focus on finding a solution to the impact of the US measures and assessing possible countermeasures available under Brazil's Economic Reciprocity Law. The government stressed that dialogue and negotiations would remain its preferred approach in dealing with the issue.

Diplomacy Remains Preferred Approach

Brazilian authorities said they had previously engaged with the Office of the United States Trade Representative (USTR) in an effort to resolve investigations initiated under Section 301. During those discussions, Brazil submitted evidence contesting US allegations related to alleged unfair trade practices.

The Brazilian government maintained that the tariffs imposed by the United States were unjustified and arbitrary and reiterated its intention to defend the country's interests through all appropriate channels.

The latest move comes amid growing trade tensions between the two countries, with Brasilia seeking to balance its response to US trade measures with its stated preference for diplomatic engagement. Brazil's government has indicated that any potential reciprocal action will be considered within the legal framework established by the Economic Reciprocity Law, while consultations with Washington are expected to provide an avenue for negotiations and a possible resolution to the dispute. (ANI)

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