Brazil's Foreign Ministry has launched an economic reciprocity process against U.S. tariffs, notifying Washington and opening a 60-day window for negotiations before deciding whether to retaliate. The dispute traces to a 25% tariff the U.S. Trade Representative imposed on Brazilian exports in July, plus an additional 12.5% tied to allegations Brazil hasn't done enough to block forced-labor goods, pushing combined tariffs as high as 37.5% on products like sugar, apparel, paper and steel.
More than 2,200 strategic goods, including coffee, beef, fertilizer and Embraer aircraft, were exempted. Brazil says the U.S. actually runs a trade surplus with it, $1.5 billion in the first half of 2026, and calls the tariffs politically motivated, noting Trump initially tied the measures to legal proceedings against his ally, former President Jair Bolsonaro.
President Lula, who is running for re-election against Bolsonaro's son Flavio, has accused Washington of election interference. Tensions have escalated further with the U.S. revoking the visa of Brazil's ambassador.
The full dispatch is available from the source below.