Brazil Initiates Consultation Process Following U.S. Tariff Increase
The Brazilian government has officially informed the United States of a consultation process in response to the decision to impose a 50 percent tariff on Brazilian goods, a move that Brasília has denounced as arbitrary, reports 24brussels.
In its formal communication, Brazil has tasked its Foreign Trade Chamber (Camex) with evaluating the possibility of invoking the Law of Reciprocity within the next 30 days. This law could enable Brazil to implement equivalent counter-tariffs and protective measures if the U.S. tariff is determined to breach international trade standards.
A technical committee will be set up to consider potential compensatory actions, which may incorporate new duties and restrictions specifically related to intellectual property. These measures will only be executed if it is found that the U.S. tariff undermines fair trade practices.
President Luiz Inácio Lula da Silva has urged caution, indicating that while reciprocity could be an option, his government intends to avoid immediate retaliation. Lula highlighted his preference for dialogue, contrasting this approach with previous failed communication attempts during Donald Trump’s administration.
Despite Brazil’s diplomatic overtures, the U.S. proceeded to implement the tariff, citing political motivations. Washington has linked this decision to ongoing judicial proceedings against former president Jair Bolsonaro, who is currently facing trial in Brazil’s Supreme Court for his alleged involvement in an attempted coup.
The escalation of tariffs occurs against a backdrop of increasing political tensions, with Trump vocally supporting sanctions against Supreme Court Justice Alexandre de Moraes, who is overseeing Bolsonaro’s trial and is accused of “restricting freedom of expression.”
What was once a stable diplomatic relationship between Brazil and the United States is now marred by escalating disputes, with trade policies reflecting underlying political conflicts.
Author: MK
Source: TASS – AP
