US Imposes 25% Tariffs on Brazil; Brasília Vows Retaliation

The United States has imposed a 25% tariff on most Brazilian imports, prompting Brazil to activate its Reciprocity Law and file a complaint with the World Trade Organization. The US administration accused President Luiz Inácio Lula da Silva of not negotiating in good faith, while Brazil countered that the measure is unjustified and harmful to bilateral relations Source: portafolioco, infobae.

The US rationale

US Secretary of State Marco Rubio stated that Lula had prioritized "his own ego" over reaching an agreement and that his economic policies are "bad for Americans and bad for Brazilians" Source: eldiado. US Trade Representative Jamieson Greer cited unfair practices including Brazil favoring its Pix payment system, inadequate anticorruption enforcement, and allowing farmers to use illegally deforested land, which he said "have prevented US workers and producers from accessing this important market" Source: abces. The investigation included two public hearings and analysis of over 360 written comments Source: infobae.

Brazil's response

President Lula announced Brazil would immediately activate the Reciprocity Law and bring the case to the WTO. He noted that over the last 15 years the US has run a $424.5 billion surplus in trade with Brazil and that in 2025, 76% of US imports entered Brazil duty-free, with an average applied tariff of only 3.1% Source: portafolioco. Lula defended Pix as "a heritage of our people and an international reference in public digital infrastructure" and rejected US claims on environmental and digital regulation Source: portafolioco.

What's next

Both sides have left the door open for dialogue. The tariff is expected to take effect in the coming weeks, while Brazil prepares retaliatory measures and legal challenges at the WTO.