Brazil Opens Reciprocity Procedure After U.S. Imposes Additional Tariffs

Overview

• The Brazilian government formally opened a reciprocity procedure on Wednesday, starting a 60‑day period for ministries to collect data and prepare a report for the Câmara de Comércio Exterior (Gecex).
• Minister Márcio Elias Rosa called the U.S. tariff measures illegal, undue and abusive and said no specific retaliatory measures have been selected so far.
• Brazil says roughly 47% of its exports to the United States face new extra duties of 12.5%, 25% or 37.5%, with about 16% of exports exposed to the highest 37.5% rate.
• The government hopes to negotiate or at least mitigate the damage with the United States before the end of the year, but does not expect the formal reciprocity process to be completed before December.
• Officials are pursuing trade diversification to soften the shock, citing export gains to markets such as Egypt, India, Peru, Vietnam and China while urging closer Mercosul and ASEAN ties as longer‑term responses.