Brazil has announced retaliatory measures following the United States’ decision to impose 25 per cent tariffs on Brazilian goods under Section 301 of the Trade Act of 1974.

The administration of President Luiz Inacio Lula da Silva issued a statement through the Social Communication Secretariat of the Presidency, formally repudiating the US action and declaring that it would initiate formal countermeasures.

The Brazilian government emphasised that the US has historically maintained a significant trade surplus with Brazil, amounting to $424.5 billion over the past fifteen years, and argued that there is no justification for unilateral measures against the country.

The statement rejected the legitimacy of the US investigation, asserting that the measures lack support in multilateral trade rules. It highlighted that in 2025, 76 per cent of imports from the United States entered Brazil without paying duties, with the average effective rate applied to US products being only 3.1 per cent.

Brazil stressed that it has consistently remained at the negotiating table to defend national interests, despite not recognising investigations that lack multilateral backing. The government noted that it had worked extensively with the Office of the United States Trade Representative (USTR) to counter allegations of unfair trade practices, presenting evidence to refute claims related to digital trade, electronic payment services, and deforestation.

The release specifically defended Brazil’s digital payment system PIX, describing it as a national heritage and an international reference for public digital infrastructure. It rejected accusations regarding the regulation of digital platforms and insisted that freedom of expression cannot serve as a shield for criminality.

On environmental policy, the government underscored that since 2023 it has taken incisive action against illicit activities and drastically reduced deforestation across all biomes. It dismissed US allegations on deforestation as absurd and politically motivated.

The administration signalled that it would take immediate steps to mitigate economic damage, invoking instruments under the Reciprocity Law approved by the National Congress and pursuing the matter within the World Trade Organization’s dispute settlement mechanism.

The statement also accused domestic political opponents, particularly the Bolsonaro family, of collaborating with the United States in orchestrating actions against Brazil, branding them as false patriots. It concluded with a strong affirmation of national sovereignty, declaring that protecting Brazil’s sovereignty is a duty that transcends political divisions.

The US Trade Representative had earlier announced the tariffs following a year-long investigation into Brazil’s trade practices. The probe concluded that several Brazilian policies were unreasonable and discriminatory, burdening American businesses and workers. Areas of concern included digital trade, electronic payment services, preferential tariffs, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation.

The USTR noted that it had convened two public hearings, received over 360 public comments, and engaged in intensive negotiations with Brazil before finalising the decision. Ambassador Jamieson Greer confirmed that the investigation was initiated at the direction of President Trump to address unfair trading practices.

The tariffs are expected to affect thousands of Brazilian export products, though exemptions have been granted for key commodities such as beef, coffee, rare earths, and aircraft parts. The move is likely to escalate trade tensions between the two countries, with Brazil determined to respond through reciprocal measures and international legal channels.

ANI