Brazil activates reciprocity law against US tariffs, blames Bolsonaro family

The Brazilian government announced it will immediately activate its reciprocity law in response to the 25% tariffs imposed by the United States on certain Brazilian products, and blamed the family of former President Jair Bolsonaro for the trade dispute Source: portafolioco; elnacionalve; infobae. President Luiz Inácio Lula da Silva called July 15, 2026 a "lamentable milestone" in bilateral relations.

US investigation and Brazilian rebuttal

The US Trade Representative (USTR) opened an investigation a year ago under Section 301 and concluded that several Brazilian practices—including the PIX payment system, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation—are "unreasonable" and restrict US trade Source: elnacionalve; infobae. Brazil rejected the findings, arguing that 76% of US imports entered the country duty-free in 2025 and the effective average tariff on US goods was only 3.1% Source: elnacionalve. The government will also take the dispute to the WTO's dispute settlement mechanism Source: portafolioco.

Political blame

In a statement, Brazil's government accused the Bolsonaro family of collaborating with the US investigation, calling them "false patriots" acting for electoral gain Source: infobae. With presidential elections less than three months away, Lula is expected to face Flávio Bolsonaro, the former president's eldest son. Jair Bolsonaro is currently serving a 27-year sentence under house arrest for an attempted coup, while another son, Eduardo Bolsonaro, was recently sentenced to four years in prison Source: infobae.