Brazil Considers Retaliatory Tariffs On US Imports

BOGOTA (Colombia), Aug 30 (Bernama-Anadolu) -- Brazil's President Luiz Inacio Lula da Silva announced on Friday that the country is considering imposing reciprocal tariffs on the United States (US), Anadolu Ajansi (AA) reported, citing local media.

According to the reports, the move comes after President Donald Trump implemented a 50 per cent tariff on Brazilian imports.

"This is a process that takes some time," Lula said in an interview with Itatiaia radio.

"We have to tell the United States that we also have actions we can take against them," he said.

The Chamber of Foreign Trade (Camex), a multi-ministerial council, has 30 days to decide whether to impose tariffs on the US, as allowed under a new reciprocity law.

Approved unanimously by Congress in April, the reciprocity law allows the government to implement "countermeasures" in response to "unilateral actions, policies, or practices by a country or economic bloc that negatively impact Brazilian competitiveness."

If approved, a team of specialists will create proposals for countermeasures, which could include reciprocal tariffs. Brazil's Foreign Ministry will then formally notify the US government, giving it an opportunity to respond throughout the investigation.

The ministry said diplomatic channels remain open to negotiate a solution to the tariffs. The duties, which took effect on Aug 6, were cited by Trump as primarily a political measure, referencing alleged judicial persecution of former President Jair Bolsonaro.

Bolsonaro, who was president of Brazil from 2019 to 2023, has faced several legal inquiries since leaving office, including for allegedly plotting to overturn the results of the 2022 election, which he narrowly lost to Lula.

On Friday, Lula reiterated that he is open to negotiations with the US, saying he is therefore "in no hurry" to apply reciprocal tariffs.

"I'm not in a hurry. What I want is to negotiate," he said.

Unlike most countries targeted by Washington's punitive tariffs, the US has a trade surplus with Brazil, which has already appealed to the World Trade Organisation (WTO) to challenge the punitive tariffs imposed by Washington. Total trade in goods and services with Brazil reached nearly US$127.6 billion last year, an increase from 2023.

Since the tariffs went into effect in August, relations between the two countries have been at an impasse.

-- BERNAMA-ANADOLU