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Brazil Launches 30-Day Review for Possible Retaliation to U.S. 50% Tariffs

The review is the first test of a new reciprocity law that could authorize reciprocal tariffs.

Overview

  • President Luiz Inácio Lula da Silva authorized the Chamber of Foreign Trade (Camex) to examine applying the Reciprocity Law in response to U.S. duties.
  • Camex has up to 30 days to determine whether the U.S. measures fit the law’s criteria and whether countermeasures are warranted.
  • If the finding is positive, a government working group will draft proposals that could target goods, services or intellectual property, including reciprocal tariffs.
  • Brazil’s Foreign Ministry will formally notify the United States on Friday, and Washington may present its views during the investigation.
  • Brazil has already sought consultations at the WTO and hired U.S. legal counsel, while officials say efforts to engage U.S. counterparts since the Aug. 6 tariff start have gone unanswered.