Lula authorizes retaliation as Trump tariffs strain Brazil-US ties
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Brazilian President Lula da Silva has authorized a retaliation process against Trump’s 50% tariffs, marking a sharp escalation in Brazil-US relations.
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Brazil's President Luiz Inacio Lula da Silva stands at Planalto presidential palace during the arrival of Ecuador's President Daniel Noboa in Brasilia, Brazil, Monday, Aug. 18, 2025. (AP Photo/Eraldo Peres)
Brazilian President Luiz Inacio Lula da Silva has authorized the start of a formal retaliation process against the 50% tariffs imposed by US President Donald Trump, Vice President Geraldo Alckmin confirmed.
The US government will be formally notified of the decision on Friday, according to Bloomberg, citing a source familiar with the matter.
The move, first reported by Brazilian newspaper O Estado de S. Paulo, represents the latest escalation in Brazil-US relations.
“This step is designed to accelerate dialogue and negotiation,” Alckmin said, noting that the plan is seen as an initial measure to encourage talks before a full trade dispute emerges.
The decision follows discussions between Lula and his cabinet ministers earlier this week. Brazil’s Chamber of Foreign Trade now has up to 30 days to analyze the Trump tariffs and determine whether they fall under the reciprocity law passed by Congress earlier this year.
If the tariffs are deemed harmful to Brazil’s international competitiveness, a group of ministries will review which countermeasures to apply. Options include imposing retaliatory tariffs, additional fees, restrictions on imports of US goods and services, suspension of trade and investment concessions, or suspension of intellectual property obligations.
Read more: US planning new sanctions on Brazil, son of Bolsonaro says
Brazil’s reciprocity law and trade policy options
The reciprocity law gives Brazil the legal basis to respond to unilateral measures by countries or economic blocs that damage its competitiveness. By authorizing the retaliation process, Lula da Silva is signaling his readiness to use the law to defend Brazil’s trade interests.
Brazil’s Foreign Ministry has not yet issued an official statement, but officials suggest the decision reflects growing frustration with US tariffs and the broader trajectory of Brazil-US trade policy.
While Lula has emphasized dialogue, the authorization of retaliation demonstrates a willingness to escalate if negotiations stall. Trade analysts warn that countermeasures could spark a wider dispute and further strain Brazil-US relations.
Whether the move results in renewed negotiations or a deeper trade rift will depend on how Washington responds to Lula da Silva’s opening gambit.
Read more: Tariffs as political weapons face pushback from India, Brazil: NYT
