Brazil Weighs Trade Retaliation Against U.S. Tariffs

TDT | Brasília

Email: mail@newsofbahrain.com

Brazil is considering retaliatory trade measures against the United States after Washington imposed steep new tariffs on Brazilian goods, officials confirmed on Thursday.

President Luiz Inácio Lula da Silva has authorized a review of possible countermeasures following U.S. President Donald Trump’s decision to slap 50 percent tariffs on a range of Brazilian imports, including coffee.

According to government sources, the Ministry of Trade and Industry has 30 days to determine whether the U.S. move violates Brazil’s recently adopted Economic Reciprocity Law. If so, experts will recommend a response that could include reciprocal tariffs or other penalties.

Brazil will formally notify Washington on Friday that it is studying possible reprisals, though officials stressed that “the space for diplomatic consultations remains open.”

The Economic Reciprocity Law, approved in April, allows Brazil to suspend trade concessions, block investments, or restrict intellectual property agreements against countries that act unilaterally against its economy. Officials say such measures are intended as a last resort if negotiations fail.

Tensions between the two countries have escalated since the tariffs took effect on August 6. President Lula complained that U.S. officials had ignored Brazil’s attempts to discuss the issue.

“We could not talk to anyone from the United States,” Lula said earlier Thursday.

The trade dispute comes despite the fact that Brazil runs a significant trade deficit with the U.S. In 2024, Washington enjoyed a surplus of $28.6 billion in goods and services. Brazil relies heavily on American imports such as industrial machinery, car engines, and aerospace components.

Trump has defended the tariffs, linking them to what he called the “witch hunt” against his ally and Brazil’s former president, Jair Bolsonaro, who is currently on trial for alleged coup plotting.

Earlier this month, Brazil also filed a complaint with the World Trade Organization in an attempt to resolve the dispute.