Brazil opens consultations on retaliation after new US tariffs

Brazil has opened consultations on possible retaliatory measures after the United States imposed 25% tariffs on a range of Brazilian exports. The move marks the start of a reciprocity process, but Brazilian officials have not yet decided whether to proceed with countermeasures. The government said it will continue to defend its position in all appropriate forums.

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The tariffs announced in July affected some Brazilian imports including sugar, clothing, paper and steel, according to the supplied material. Washington also imposed an additional 12.5% tariff on Brazil and several other countries, citing allegations of weak enforcement of bans on forced labour. Brazil described the new US tariffs as unjustified and arbitrary, and said the consultations would involve further diplomatic talks with US trade authorities.

No retaliatory step has been approved yet, but the options under consideration are broad. They include tariffs, taxes or fees, the removal of exemptions, lower import tariffs, and restrictions on imports of American goods or services. A source cited in the supplied material also said possible measures could extend beyond tariffs, including the suspension of pharmaceutical and agricultural patents.

The dispute matters because the United States runs a trade surplus with Brazil, selling more goods and services to the country than it buys from it. In 2026 so far, the United States has exported $26.5bn to Brazil and imported $17bn, according to the US Census Bureau. That imbalance gives the dispute economic significance for both sides, especially if consultations lead to wider restrictions or a cycle of retaliation.

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The latest step comes against the backdrop of President Donald Trump's broader tariff strategy. In April 2025, the White House announced a minimum 10% tariff on nearly every country in what it called the Liberation Day tariffs. Those measures were struck down by US courts later in the year, but the current round is widely seen as a replacement designed to withstand legal challenge.

Brazil's response now places it among the countries weighing how to react to the renewed US trade push. What happens next will depend on the outcome of the consultations and whether Brazil decides to move from review to action. It remains unclear which sectors would be targeted first, or whether the two governments can narrow the dispute through talks.

The key issue to watch is whether Brazil limits itself to diplomatic pressure or adopts formal retaliatory measures that could affect trade flows between the two countries.

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