Brazil Moves to Retaliate Against US Tariffs, Signals Firm Response


Brazil Moves to Retaliate Against US Tariffs, Signals Firm Response

TEHRAN (Tasnim) - Brazil’s Foreign Ministry has instructed its trade body Camex to begin a formal assessment of whether to activate a newly passed reciprocity law against the United States, two ministry sources said on Thursday.

The law, approved earlier this year by Brazil’s Congress, provides a legal framework for the country to impose countermeasures in response to unilateral actions targeting its goods and services, including the option of tariffs.

The move marks a sharp escalation by Latin America’s largest economy in response to Washington’s unilateral measures. US President Donald Trump earlier this month slapped 50% tariffs on Brazilian imports — a decision widely viewed as economic coercion.

President Luiz Inacio Lula da Silva authorized the use of the law against the United States, the sources added.

Camex has 30 days to prepare a report. If it recommends using the reciprocity law, a government task force will define which sectors should be targeted in Brazil’s retaliatory steps.

Officials said Washington would be formally notified on Friday of the process. The Ministry for Development, Industry, Trade and Services, which oversees Camex, did not immediately respond to a request for comment.

Trump justified the tariff hike by accusing Brazil of “unfair trade practices” and of pursuing a so-called “witch hunt” against his ally and former president Jair Bolsonaro, who faces trial on coup-plotting charges.

While certain exports such as orange juice and aircraft were excluded, the sweeping measures have been denounced in Brasília as heavy-handed and politically motivated.

Brazilian officials have openly criticized the lack of space for negotiation with their US counterparts, underscoring a growing rift in bilateral relations.

 

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