Brazil Activates Retaliatory Tariff Law Against US, Avoids Immediate Action

BRASILIA: Brazil has formally launched a process under its Economic Reciprocity Law in response to tariffs imposed by US President Donald Trump on Brazilian goods, but the government has refrained from immediately imposing retaliatory measures.
Brazilian President Luiz Inacio Lula da Silva said the activation of the law demonstrated that Brazil respected itself and was prepared to defend its national interests. Brazil’s Foreign Ministry has formally notified Washington and requested diplomatic consultations to allow both sides time to negotiate measures aimed at reducing or eliminating the impact of the US tariffs.
Officials clarified that activating the law would not automatically result in equivalent tariffs on American products. Brazilian authorities will first assess the impact on domestic industries, while the government’s Foreign Trade Chamber, CAMEX, will examine possible responses. Public consultation will also form part of the process.
Potential measures under the law include tariffs on US goods, restrictions on services or imports, suspension of trade preferences and actions affecting intellectual property rights. However, Brazilian officials have warned that rapid retaliation could disrupt supply chains, raise costs and increase inflation.
Brazil also plans to challenge the US measures at the World Trade Organization. The government has offered credit lines and other forms of support to sectors affected by the tariffs.
President Lula has warned Washington against interfering in Brazil’s domestic affairs or in the October 2026 presidential election. At the same time, he said he was ready to hold direct talks with President Trump.
The dispute comes as Lula campaigns for re-election, while Senator Flavio Bolsonaro—son of former President Jair Bolsonaro and a prominent Trump ally—is emerging as a key political rival.