Brazilian Congress passes law allowing retaliation against US tariffs

On April 2, the Brazilian Congress unanimously approved a bill allowing the Government to propose solutions to respond to the 10% tariff on the country's exports to the US following President Donald Trump's announcement of reciprocal tariffs.

Consumers shop at a supermarket in Curitiba, Brazil. Photo: AFP/TTXVN

Brazil's lower house has passed a law allowing President Lula da Silva's government to take retaliatory measures against US President Trump's reciprocal tariff decision, which will impose a 10% tax on 10% of Brazilian exports to the US. Previously, on April 1, the Brazilian Senate also passed this law under the name " economic reciprocity law".

Immediately after President Trump announced the 10% tax, the Brazilian government issued a statement saying it was evaluating all possible actions to respond to the US's decision to impose new taxes.

"The Brazilian government is evaluating all possible actions to ensure reciprocity in bilateral trade, including recourse to the World Trade Organization (WTO), to protect legitimate national interests," the statement said. The Brazilian government also expressed its willingness to dialogue with the US and stressed that the White House's imposition of "reciprocal" tariffs does not reflect the reality of the two countries' trade relations.

Meanwhile, the Brazilian Ministry of Foreign Affairs and the Ministry of Industry and Trade issued a statement affirming that they will seek to protect the interests of producers, businesses and workers before the US government through consultations with the private sector, in line with the tradition of supporting the multilateral trading system.

Brazil also criticized the newly announced tariffs, which, like others imposed on the steel, aluminum and auto industries, violate US commitments to the WTO.

The United States is Brazil's second-largest trading partner, with exports reaching $40.3 billion in 2024, accounting for 12% of total merchandise exports of Latin America's largest economy and up 9.4% year-on-year. Brazil has a $253 million trade deficit with the United States.

Brazil’s main export to the US is oil, worth $5.8 billion in 2024. The US, Brazil’s number one coffee importer, with a turnover of $1.9 billion in 2024, could even benefit, as the 10% tariff applied to Brazil is more favorable than the 46% tariff applied to its trading rival in this item, Vietnam. Cellulose and wood pulp ($1.5 billion) and Embraer-made aircraft ($1.4 billion) are also important Brazilian exports to the US.

Hours before the measures were announced, Brazilian Foreign Minister Mauro Vieira spoke by phone with US Trade Representative Jamieson Greer. The Brazilian government has been in technical talks with Washington for weeks to try to avoid or limit the imposition of new tariffs that could damage the economy.

Last week, Brazilian Economy and Finance Minister Mauricio Carvalho Lyrio led a delegation to Washington to meet with US trade representatives.

The Brazilian government has yet to retaliate against the steel tariffs and, while not ruling out reciprocal measures, has so far only said it is considering filing a complaint against Washington's measures with the World Trade Organization (WTO).

Source: https://baotintuc.vn/the-gioi/quoc-hoi-brazil-thong-qua-luat-cho-phep-dap-tra-muc-thue-quan-cua-my-20250403074447952.htm