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Friday 17 July 2026 - 10:35pm
NNA News – Brazil has rejected the United States' decision to impose a 25% tariff on Brazilian products, describing the measures as unjustified and announcing plans to challenge them through the World Trade Organization (WTO) and the country's Reciprocity Law. According to the statement, reported by Brasil 247, President Luiz Inácio Lula da Silva's government said the tariffs represented a setback in bilateral relations and pledged to defend Brazil's sovereignty through international legal mechanisms.
The response followed a decision by the administration of US President Donald Trump to impose the tariffs under Section 301 of the US Trade Act. According to the Brazilian government, the measures lack both an economic and legal basis. It rejected the use of Section 301 as a mechanism to pressure Brazil and said it would pursue formal dispute settlement through the WTO while implementing measures available under Brazil's Reciprocity Law.
The government also disputed Washington's trade rationale, citing official US statistics which it said showed the United States accumulated a trade surplus of US$424.5 billion in goods and services with Brazil over the past 15 years. According to the statement, 76% of imports from the United States entered Brazil duty-free in 2025, while the average tariff applied to US products stood at 3.1%.
Brazil also rejected allegations made during an investigation by the Office of the United States Trade Representative (USTR), saying it had participated in technical consultations throughout the past year and submitted evidence addressing concerns raised by US authorities. The government said its submissions covered issues including the Pix instant payment system, regulation of digital platforms, environmental policies, ethanol and other areas cited by the United States.
Brazil defended Pix, describing the Central Bank-developed payment platform as a national asset and an international benchmark for public digital infrastructure. The statement also rejected criticism of Brazil's environmental policies, saying deforestation had declined across all biomes since 2023. According to the government, a public consultation conducted by the USTR found that 63 of 78 submissions from Brazilian and American businesses opposed the proposed tariffs.
To mitigate the impact of the measures, the government said it would implement the Brasil Soberano Plan to support affected businesses, workers and productive sectors while initiating procedures under the Reciprocity Law and the WTO dispute settlement system. The statement said the measures were intended to respond to unilateral trade actions within the framework of international law while preserving Brazil's ability to negotiate. In the statement, the government also criticised members of the Bolsonaro family, alleging they had supported actions against Brazil during the Section 301 investigation. It said the defence of national sovereignty should remain above partisan political disputes.
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