Brazil formally requested consultations with the United States at the World Trade Organization on Monday, escalating its response to American duties that now total 37.5% on some Brazilian exports after Washington announced a 25% levy on July 22 and a further 12.5% surcharge the following day.
The consultation request — the first formal step in the WTO's dispute settlement process — challenges both measures, which Brasília says are unjustified and inconsistent with U.S. obligations under GATT 1994 and the Dispute Settlement Understanding. Brazil challenged earlier U.S. tariffs last year, which were later struck down by the U.S. Supreme Court.
The combined tariffs will affect approximately $6.6 billion in Brazilian exports to the United States, with the 12.5% surcharge applied to goods from dozens of nations over alleged forced labor practices.