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2d ago

Brazil Sets Up Committee to Retaliate Against Trump’s 50% Tariffs

Lula has invoked Brazil’s Law of Economic Reciprocity to plan mirror measures before the August 1 tariff deadline.

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Demonstrators wearing costumes and masks depicting former Brazilian President Jair Bolsonaro and U.S. President Donald Trump take part in a protest against U.S. President Donald Trump's announcement of 50% tariffs on Brazilian products, in Sao Paulo, Brazil July 10, 2025. REUTERS/Alexandre Meneghini/File Photo
A worker arrives at Brazil's Companhia Siderurgica Nacional (CSN, National Steel Company), in Volta Redonda, Rio de Janeiro state, Brazil, on March 25, 2025.
A cargo ship is seen from Copacabana beach in Rio de Janeiro, Brazil, on July 10, 2025.

Overview

  • President Donald Trump announced on July 7 that a 50% tariff on all Brazilian imports will take effect on August 1 to pressure Brazil over the Supreme Court trial of Jair Bolsonaro.
  • President Luiz Inácio Lula da Silva decreed on July 15 the formation of an interministerial committee chaired by Vice President Geraldo Alckmin to coordinate Brazil’s response.
  • Under the 2022 Law of Economic Reciprocity, the committee will draft mirror tariffs and other economic countermeasures to any unilateral U.S. trade barriers.
  • Lula has launched a patriotic campaign under slogans such as “Brazil belongs to Brazilians” to unite industry leaders and political factions against perceived foreign interference.
  • Bolsonaro’s allies are divided over Trump’s sweeping tariffs, with many expressing surprise at their scope and concern for agricultural and aviation sectors.