Overview
- Brazil's government opened the administrative process under its 2025 Law of Economic Reciprocity on Thursday and formally notified the United States while requesting diplomatic consultations.
- Washington imposed additional Section 301 tariffs on many Brazilian goods in mid‑July, with reported rates roughly between 12.5% and 25% and some lines cited as higher, covering about 18% of Brazilian exports to the U.S.
- The reciprocity procedure is an evaluation, not an automatic retaliation; Brasilia says it will analyze measures, keep negotiation channels open and continue the separate WTO dispute it already filed against the tariffs.
- The U.S. actions hit sectors such as industrial machinery, sugar, ethanol, wood and footwear while exempting items including meat, coffee and aviation parts, and Brazilian media estimate affected exports near $7.4 billion.
- Under the 2025 law Brazil must complete administrative steps before any countermeasures, and possible responses can include tariffs or other proportional trade restrictions pending consultations and internal review.