BOGOTA (Colombia), July 17 — The Brazilian government has condemned a new round of US tariffs on its exports, threatening immediate economic retaliation and escalation to the World Trade Organization (WTO) in a move that could further strain bilateral ties ahead of Brazil’s October presidential election, Anadolu Ajansi (AA) reported.
The Trump administration announced on Wednesday a blanket 25 per cent tariff on certain Brazilian goods entering the US, effective July 22. The decision follows a trade investigation by the Office of the United States Trade Representative (USTR), which concluded that Brazil’s commercial policies are structurally unfair to US interests.
The government of President Luiz Inacio Lula da Silva swiftly hit back, describing the protectionist measure as “an act without economic justification”. Brasilia announced that it would invoke its domestic Reciprocity Law to impose equivalent tariffs on imports from the US.
“Brazil will immediately begin the procedures necessary to invoke the mechanisms provided for under the reciprocity law ... and will also pursue the matter through the World Trade Organization’s dispute settlement mechanism,” the presidential office said.
The presidency rejected the USTR’s claims of unfair trade practices, pointing instead to an existing trade imbalance that favours Washington. Lula said in 2025 that 76 per cent of all US imports entered Brazil duty-free and maintained that the average effective tariff imposed on American goods was 3.1 per cent.
Last year, US exports to Brazil exceeded imports by nearly US$42 billion, giving Washington its third-largest global trade surplus after the Netherlands and the UK.
“Brazil does not recognise the legitimacy of investigations that are not grounded in the multilateral rules governing international trade,” Lula added.
To protect domestic industries and limit inflationary pressures, the White House order exempts several Brazilian commodities that the US does not produce in large quantities or that are essential to American supply chains, including coffee, beef, oranges, orange juice and aerospace components.
US Secretary of State Marco Rubio wrote on social media platform X that the tariffs were a direct consequence of Lula putting “his own ego ahead of making a deal” and failing to negotiate in good faith.
Lula has placed the blame squarely on the family of his predecessor, Jair Bolsonaro. The trade dispute between the two leaders began in July 2025, when the Trump administration imposed a 50 per cent tariff on Brazilian goods, citing what it described as a “witch hunt” against Bolsonaro, who was convicted for his role in an attempted coup following his defeat in the 2022 election.
Although some of the tariffs imposed in 2025 were later rolled back, the latest 25 per cent measures mark a significant escalation.
The economic tensions are mounting as Brazil prepares for its presidential election in October. Lula is expected to seek re-election in what is shaping up to be a highly polarised contest against conservative senator Flavio Bolsonaro, the son of the former president.
