Brazil will not retaliate against new U.S. tariffs but will instead invoke a reciprocity law to correct what it calls trade injustices, Vice President Geraldo Alckmin said on Monday after Washington imposed 25% duties on Brazilian goods.
An "eye for an eye" approach would leave both countries blind, Alckmin said, adding that Brasilia will pursue public hearings under the reciprocity framework and continue dialogue with Washington and U.S. companies operating in Brazil. The U.S. duties affect roughly 18% of Brazilian exports to the United States, or about $7.4 billion, with a further 12.5 percentage-point increase possible by July 24 over forced-labor allegations.
The government's response rests on three pillars: financial support for affected companies, market diversification and engagement with domestic industries. Trade agency ApexBrasil will launch a 130-million-real diversification plan in August targeting India, Mexico, Singapore, Japan and Southeast Asian nations. The 25% surcharge also applies to goods already in transit from July 29.