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Government informs the US that it will begin consultations to apply reciprocity against Trump tariffs

(FOLHAPRESS) - The government of President Luiz Inácio Lula da Silva (PT) notified the United States this Thursday (13) to inform that it will begin the process of applying the Reciprocity Law against tariffs. In this first phase, Brazil...

Government informs the US that it will begin consultations to apply reciprocity against Trump tariffs
365 Summary

“The diplomatic consultations, which aim to mitigate or nullify the effects of the measures and countermeasures provided for in the Economic Reciprocity Law, reinforce the Brazilian government's willingness to prioritize dialogue and negotiation in its international relations”, says the statement. The legislation allows Brazil to adopt proportional...

  • The legislation allows Brazil to adopt proportional commercial and diplomatic countermeasures when countries or economic blocs impose barriers considered unjustified to Brazilian products.
  • For example, the limitation of imports of goods and services, direct retaliation through tariffs, the reassessment of obligations in intellectual property agreements and the suspension of...
  • The current procedure corresponds to a stage of dialogue between the diplomacies of the two countries, with the aim of mitigating or even nullifying the effects of the measures applied and...

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(FOLHAPRESS) - The government of President Luiz Inácio Lula da Silva (PT) notified the United States this Thursday (13) to inform that it will begin the process of applying the Reciprocity Law against tariffs. In this first phase, Brazil requests diplomatic consultations before the effective adoption of countermeasures.

“The diplomatic consultations, which aim to mitigate or nullify the effects of the measures and countermeasures provided for in the Economic Reciprocity Law, reinforce the Brazilian government's willingness to prioritize dialogue and negotiation in its international relations”, says the statement.

The legislation allows Brazil to adopt proportional commercial and diplomatic countermeasures when countries or economic blocs impose barriers considered unjustified to Brazilian products.

For example, the limitation of imports of goods and services, direct retaliation through tariffs, the reassessment of obligations in intellectual property agreements and the suspension of commercial and investment concessions are foreseen.

The current procedure corresponds to a stage of dialogue between the diplomacies of the two countries, with the aim of mitigating or even nullifying the effects of the measures applied and the countermeasures provided for by law.

On July 15, the White House announced a new tax rate of 25% on Brazilian products, reaching around 18% of Brazil's exports to the USA, or approximately US$7.4 billion (R$38 billion) in goods, according to government calculations.

The following week, the American government applied another tariff against Brazil, this time at a rate of 12.5%, under the allegation of leniency in combating the import of products produced with slave labor. For certain products, the fees are added together and reach 37.5%.

In the note, the Brazilian government once again classified the American measures as unjustified and reinforced that it is continuing negotiations with the United States.

"We will continue to defend multilateralism and the reform of the World Trade Organization and we will continue working to diversify commercial partnerships and open new markets for our products. We will maintain protective measures for sectors affected by tariffs through the Sovereign Brazil Plan, preserving jobs and national productive capacity", says an excerpt.

Last month, the government had already announced that it would use the prerogatives provided for by the Reciprocity Law to react to the tariff. At the time, Brazil stated that it did not recognize the legitimacy of investigations without support from multilateral trade rules and highlighted that, even so, it remained at the negotiating table.

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