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Brazil Begins Process To Retaliate Against US Tariffs

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Brazil Begins Process To Retaliate Against US Tariffs

The Brazilian government has opened a process that could lead to reciprocal measures against the United States in response to tariffs recently imposed by Washington on Brazilian goods.

The government said on Thursday that the preliminary step involves requesting further diplomatic consultations with US trade authorities, as relations between the two countries continue to deteriorate.

Brazil described the US tariffs as “unjustified and arbitrary”, saying it would continue to defend its position through all appropriate channels.

The United States imposed 25 per cent tariffs on some Brazilian goods in July, citing alleged unfair trade practices. It also introduced 12.5 per cent tariffs on goods from several countries, including Brazil, over allegations of weak enforcement of forced labour restrictions.

READ ALSO: US Supreme Court To Rule On Trump Tariffs

Brazilian President Luiz Inacio Lula da Silva had earlier pledged to take the necessary steps to invoke the country’s Reciprocity Law, which allows for retaliatory measures beyond tariffs on US imports.

Brazilian officials have warned that such measures could disrupt supply chains and increase domestic inflation.

Sources said the government in July was considering options including restrictions on US audiovisual companies and the suspension of pharmaceutical and agricultural patents.

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