Brazil begins exploring retaliatory options to new US tariffs

Brazil has opened consultations into potential retaliatory measures against the United States following the imposition of 25 percent tariffs on a range of Brazilian exports.

The new US tariffs are “unjustified and arbitrary”, and Brazil will “continue to defend its position in all appropriate forums”, the Brazilian government said in a statement on Thursday.

The step is the beginning of the reciprocity process that could eventually see Brazil introduce retaliatory measures, including tariffs, on imports from the US.

This early stage involves further diplomatic consultations with US trade authorities.

In July, the US imposed a surcharge of 25 percent on some Brazilian imports, including sugar, clothing, paper and steel, alleging unfair trade practices. The US also hit Brazil – and a host of other countries – with an additional 12.5 percent tariff linked to allegations of lax enforcement of forced labour bans.

While no decision has yet been made, Brazil’s retaliatory options include imposing taxes or fees, eliminating exemptions or reducing import tariffs, or even restricting imports of American goods or services.

A source told the Reuters news agency that further measures could go beyond tariffs, for example by suspending pharmaceutical and agricultural patents.

The US runs a trade surplus with Brazil, meaning it sells the country goods and services worth more than it imports from it. In 2026 so far, the US has exported $26.5bn worth to Brazil and imported $17bn, according to the US Census Bureau.