Escalation: Brazil Retaliates Over New US Tariffs

The United States set 25% tariffs on a wide range of Brazilian imports, to start on July 22. Brazil’s presidency called the move a setback in ties and said it will immediately invoke the country’s Reciprocity Law and take the dispute to the World Trade Organization. Imports of coffee and beef are carved out; some lists exempt certain ethanol products, while others say ethanol will be covered.

Washington cited unfair practices, including Brazil’s free instant‑payment system disadvantaging U.S. payment providers and farmers gaining from illegal deforestation. Brasília rejects the claims, points to a sharp drop in deforestation since 2023, and says it does not recognize one‑sided probes outside global trade rules. The tariffs could hit more than $11 billion of Brazilian exports, and once in force would make Brazil the second most heavily tariffed U.S. target after China.

Lula’s office blamed Jair Bolsonaro’s family for pushing the tariff plan in Washington. Flávio Bolsonaro earlier asked U.S. officials to suspend the move, then blamed Lula after it went ahead.

AI-synthesized from multiple reported sources