Brazil opens reciprocity process against US over tariffs

The Brazilian government has initiated a process that could lead to reciprocal measures against the US in response to the tariffs recently imposed by Washington on Brazilian goods, according to a statement released on Thursday. In July, the US government announced a 25% tariff on certain Brazilian products, alleging unfair trade practices, alongside 12.5% tariffs on goods from numerous countries, including Brazil, tied to allegations of lax enforcement of forced labor bans.

The preliminary step involves requesting additional diplomatic consultations with US trade authorities as relations between the two nations have deteriorated. Brazilian officials maintain that the US tariffs are unjustified and arbitrary, and they will continue to defend their position in all relevant forums. President Luiz Inacio Lula da Silva had previously vowed to take necessary steps to invoke Brazil's Reciprocity Law, enabling retaliatory measures beyond tariffs on imports from the US, which officials believe may disrupt Brazilian supply chains or exacerbate domestic inflation.