Brazil Slams US Tariff Hikes as "Lamentable" Blow to Sovereignty

Brazil slams US tariff hikes as "lamentable" blow to sovereignty and global trade rules

São Paulo, July 18

In an official statement issued on Wednesday, President Luiz Inacio Lula da Silva's government said the tariffs lacked both economic and legal justification.

Brasilia announced it would challenge the decision at the World Trade Organisation (WTO) while invoking Brazil's Reciprocity Law, recently approved by the National Congress, to formulate an appropriate response, as per the reports of Brasil 247.

Rejecting Washington's justification under Section 301 of the US Trade Act, the Brazilian government argued that official US data contradict claims of unfair trade practices.

According to the statement, the United States has recorded a cumulative trade surplus of USD 424.5 billion in goods and services with Brazil over the past 15 years.

It also noted that 76 per cent of US imports entered Brazil duty-free in 2025, while the country's effective average tariff on American products stood at 3.1 per cent.

The government also defended Brazil's instant payment system, Pix, calling it a national asset and a global benchmark in public digital infrastructure.

It rejected allegations concerning digital regulation, environmental policies and ethanol, saying Brazilian authorities had presented technical evidence to US officials disputing each of the concerns raised during bilateral consultations.

Brasilia further said that a majority of submissions during the US Trade Representative's public consultation opposed the tariff proposal, indicating limited support for the measure even among businesses in both countries.

The government announced that its Sovereign Brazil Plan would be activated to protect domestic companies, jobs and production chains affected by the tariffs.

Alongside legal action at the WTO, officials said reciprocal measures would be considered under Brazilian law.

The statement also criticised members of the Bolsonaro family, alleging they had supported actions that undermined Brazil's national interests.

Reaffirming its commitment to protecting national sovereignty, the Lula administration said its response would remain within the framework of international law while safeguarding Brazil's economic and strategic interests.

— ANI