Brazil Opens Process For Possible Retaliation Against US Over Tariffs

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

The Brazilian government said on Thursday that the initial step involves seeking further diplomatic consultations with US trade authorities as tensions between the two countries continue to grow.

Washington imposed a 25% tariff on certain Brazilian goods last month, citing what it described as unfair trade practices. Brazil was also among dozens of countries affected by separate 12.5% tariffs linked to allegations of insufficient enforcement of bans on goods associated with forced labour.

The Brazilian government has strongly rejected the US measures, describing the tariffs as unjustified and arbitrary. It said the country would continue defending its position through all appropriate channels.

Brazilian President Luiz Inacio Lula da Silva had previously said his government would take the necessary steps to activate the country’s “Reciprocity Law” after the US tariffs were announced in July.

The legislation allows Brazil to impose retaliatory measures that could go beyond tariffs on American imports. Brazilian officials have warned that such action could potentially disrupt US supply chains operating in the country or contribute to higher domestic inflation.

The latest move comes as diplomatic relations between Brasília and Washington have become increasingly strained in recent months.

The Brazilian government’s decision to begin the reciprocity process does not immediately mean retaliatory measures will be imposed. Further consultations and assessments are expected before any concrete action is taken.

Sources previously told Reuters that Brazilian authorities had been examining several possible responses to the US tariffs. Options reportedly included restrictions affecting American audiovisual companies as well as suspending pharmaceutical and agricultural patents.

The potential measures could further escalate an already tense trade relationship between the two countries, with both governments facing pressure to protect their domestic economic interests while avoiding additional disruption to businesses and consumers.

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