Brazil starts process for possible retaliation against U.S. tariffs
Marco Rubio
Jose Luis Magana/Associated Press
Brazil officially started the process on Thursday to potentially invoke its Economic Reciprocity Law against the United States. This move is a response to the Trump administration’s 25% tariff on Brazilian exports, marking an escalation in the trade dispute and increasing diplomatic tensions between the two nations. This action represents the first move towards possible retaliation, coming a month after Washington announced the Section 301 tariff.
Brazil challenges new U.S. tariffs at WTO
Lula criticizes Trump tariffs in “Washington Post” op-ed
Trump’s tariffs hurt, but not that much
Brazil’s Foreign Affairs Ministry has informed the U.S. government of the start of the process and has requested diplomatic consultations, according to the presidential communications office. The government emphasized that these consultations “reinforce its willingness to prioritize dialogue and negotiation in its international relations.”
“Over the past year, the Brazilian government has consistently worked with the Office of the U.S. Trade Representative to end the Section 301 investigations and has presented evidence refuting each allegation of purported unfair trade practices by Brazil,” the statement said.
The review is merely the initial step in a process that may involve consultations with representatives from both public and private sectors. According to rules issued in July 2025, Brazil’s foreign trade chamber, Camex, is ultimately required to evaluate any proposed actions.
If the proposal is approved, the government will specify the countermeasures it plans to adopt, subject to further review. These measures may be revised, delayed, or suspended at any time based on the progress of diplomatic negotiations.
The reciprocity law had been considered since the U.S. tariff announcement. The next day, Vice President Geraldo Alckmin described the legislation as “an important legal instrument” and said the government would evaluate “the right time and manner” to implement it.
Since then, officials from the Foreign Ministry and the Ministry of Development, Industry, Trade and Services have tried to negotiate lower tariffs or increase the exemptions list, but without success. The government said it would also maintain measures to protect industries affected by the tariffs through its Brasil Soberano program, which aims to preserve jobs and domestic production capacity.
One week after the U.S. tariff took effect, President Lula initiated the third phase of the program, aimed at extending credit to affected companies and industries deemed strategically vital to the economy. The government intends to allocate up to R$18.5 billion to industries affected by the tariffs, including strategic sectors such as critical minerals and fertilizers, as well as companies exporting to the Persian Gulf.
In Thursday’s statement, the government again criticized the Trump administration’s measures:
“The U.S. tariffs are unjustified and arbitrary, and Brazil will continue to defend its position in every appropriate forum,” it said. “We will continue to defend multilateralism and the reform of the World Trade Organization while working to diversify our trade partnerships and open new markets for our products.”
Section 301 of the U.S. Trade Act allows the U.S. Trade Representative to investigate foreign practices considered harmful to American commerce and take action in response. The investigation into Brazil covers several issues, including the country’s Pix instant payment system, alleged sales of counterfeit goods, and claims that Brazil restricts U.S. social media platforms. Brazil has formally rejected these allegations.
While the Brazilian government still highlights the potential for negotiations, officials involved in the discussions are increasingly pessimistic about reversing the measures soon. They claim the Trump administration remains firm, with Brazilian diplomats noting increased hostility as the presidential election nears, partly due to public comments by U.S. Secretary of State Marco Rubio connecting tariffs to Lula’s position.
