Brazil opens reciprocity process against US over tariffs

Brazil has initiated a process that may result in reciprocal measures against the United States following the imposition of tariffs by Washington on Brazilian goods, according to a statement released on Thursday. The U.S. government had announced a 25% tariff on some Brazilian goods in the previous month, alongside 12.5% tariffs on products from numerous countries, including Brazil, in relation to accusations of insufficient enforcement of labor rights.

Thursday's initial step includes requesting additional diplomatic discussions with U.S. trade officials at a time when bilateral relations have deteriorated. The Brazilian government asserts that the U.S. tariffs are unjustified and arbitrary, and it will persist in advocating its stance in all appropriate platforms. Upon the announcement of the tariffs in July, President Luiz Inacio Lula da Silva vowed to take necessary actions to invoke Brazil's Reciprocity Law, which permits retaliatory measures beyond tariffs on imports from the U.S., which officials anticipate could disrupt Brazilian supply chains or exacerbate domestic inflation.

According to sources cited by Reuters in July, the government is evaluating options that could encompass restrictions on U.S. entertainment firms and a suspension of pharmaceutical and agricultural patent rights.