Brazil Condemns US 25% Tariff, Vows WTO Challenge and Reciprocal Measures

July 18, 2026

São Paulo: The Brazilian government has strongly criticised the United States’ decision to impose a 25 per cent tariff on Brazilian products, calling the move a “lamentable milestone” in bilateral relations and announcing plans to challenge the decision before the World Trade Organization (WTO).

In an official statement, President Luiz Inácio Lula da Silva’s administration said the tariffs lack both economic and legal justification and pledged to protect Brazil’s economic interests through international legal channels and domestic reciprocal measures.

Brazil rejects the US justification

The Brazilian government rejected Washington’s decision to invoke Section 301 of the US Trade Act, arguing that official US trade data does not support claims of unfair trade practices.

According to Brazil, 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 goods was 3.1 per cent.

Brasília further defended its digital payment platform Pix, describing it as a national asset and a global benchmark for public digital infrastructure. It also rejected US concerns related to digital regulation, environmental policies and ethanol, saying Brazilian authorities had presented technical evidence during bilateral consultations.

WTO challenge and reciprocal action planned

The Lula administration said it would activate the Sovereign Brazil Plan to protect domestic businesses, jobs and production chains affected by the tariffs.

Along with filing a complaint at the WTO, the government said it would consider reciprocal measures under Brazil’s recently approved Reciprocity Law.

The statement also claimed that most submissions received during the US Trade Representative’s public consultation opposed the tariff proposal, suggesting limited support for the measure among businesses.

Reaffirming its commitment to national sovereignty, the Brazilian government said its response would remain within the framework of international law while safeguarding the country’s economic and strategic interests.