Brazil mulls reprisals for 50 pc Trump tariffs

BRASÍLIA:Brazil is considering retaliatory trade measures against the United States, including tariffs, after President Donald Trump imposed 50% levies on a range of Brazilian imports, government sources told AFP on Thursday.

President Luiz Inacio Lula da Silva gave his approval for a study of which retaliatory actions -- if any -- Brazil could take for the punishment imposed by Trump over the coup-plotting trial of his ally Jair Bolsonaro, two government sources said.

The Ministry of Trade and Industry will have 30 days to determine whether the US tariffs fall under a recent Economic Reciprocity Law.

If they do, a group of experts will propose countermeasures, which could include reciprocal tariffs, a diplomatic source said.

The Brazilian government will formally notify the United States on Friday of its decision to examine possible reprisals, the source added.

"The space for diplomatic consultations remains open," the source added.

The Economic Reciprocity Law, adopted in April, allows the government to take "countermeasures" against countries that unilaterally act to harm Brazil's competitiveness.

The measures include suspending trade concessions, investments, or intellectual property agreements.

They are intended as actions of last resort in the event that negotiations with the other country or trading bloc fail.

Relations between the United States and Brazil have been at an impasse since the 50%tariffs on Brazilian coffee and other goods took effect on August 6.

Earlier Thursday, the left-wing Lula complained that Washington was deaf to Brazil's complaints.

"We could not talk to anyone from the United States," he said.

While Trump's trade war has chiefly targeted countries that run a large trade surplus with the United States, Brazil imports from the US far outweigh its exports.

Washington had a trade surplus of $28.6 billion in goods and services with Latin America's biggest economy in 2024.

Brazil imports a large number of steel-based manufactured products from the United States, including industrial machinery, car engines and parts for its aerospace industry.

Trump has cited the "witch hunt" against Brazil's former far-right president Jair Bolsonaro, who is on trial for coup plotting, in justifying the 50%tariffs on the country.

Earlier this month Brazil turned to the World Trade Organization for help in resolving the dispute.

By RSS/AFP