BRASÍLIA, Brazil, July 16 (ANI): Brazilian President Luiz Inácio Lula da Silva’s administration announced Thursday that it will initiate formal retaliatory measures after the United States imposed 25% tariffs on Brazilian goods, arguing that the move violates multilateral trade rules.
In a statement released by the Social Communication Secretariat of the Presidency on X, the Brazilian government said it “repudiates the decision announced today by the U.S. government regarding the imposition of 25% tariffs on Brazilian products, based on Section 301 of the Trade Act of 1974.”
Addressing the economic impact of the decision, the Brazilian government said the United States has historically maintained a substantial trade surplus with Brazil.
“There is no justification for unilateral measures against our country. According to statistics from the U.S. government itself, the United States has accumulated a surplus of $424.5 billion in goods and services with Brazil over the past 15 years,” the statement said.
The administration rejected the legitimacy of the US investigation, arguing that the measures lack support under multilateral trade rules.
“In 2025, 76% of imports originating from the United States entered the country without paying import duties, and the average effective rate applied to U.S. products was only 3.1%. Brazil does not recognize the legitimacy of investigations without support in the multilateral rules of trade. Despite this, we have never left the negotiating table to defend national interests,” the statement said.
It added that over the past year, the Brazilian government had worked extensively with the Office of the United States Trade Representative (USTR) to resolve the dispute by presenting evidence challenging the allegations underlying the Section 301 investigation.
The government said it had demonstrated that US allegations concerning Brazil’s PIX digital payment system and regulation of digital platforms were unfounded, while describing accusations related to deforestation as “absurd.”
“PIX is a heritage of our people and an international reference for public digital infrastructure. In Brazil, we will not abdicate protecting our families and our children against the greed of a handful of techno-oligarchs. Freedom of expression is not a blank check for criminality,” the statement said.
The administration also defended its environmental record, saying it has aggressively combated environmental crimes since 2023 and significantly reduced deforestation across all Brazilian biomes.
The government said it would immediately begin implementing measures to counter the economic effects of the tariffs.
“The government of Brazil will continue to adopt measures to reduce the damage caused to the economy and the income of Brazilians,” the statement said, adding that it would activate mechanisms provided under Brazil’s Reciprocity Law, unanimously approved by the National Congress, and pursue the matter through the World Trade Organization’s dispute settlement process.
The statement also criticized Brazil’s domestic political opposition, alleging that the US decision was “part of the plot built with the active collaboration of the Bolsonaro family,” whom it described as “false patriots who orchestrated and publicly defended actions against our country.”
The government concluded by reaffirming its commitment to defending Brazil’s sovereignty.
“One cannot love Brazil only when we win elections. Protecting our sovereignty is an obligation that stands above all parties and all trends. The Brazilian government will not falter in its duty to preserve it,” the statement said.
The announcement followed a decision by the Office of the United States Trade Representative to impose 25% tariffs on certain Brazilian imports under Section 301 of the Trade Act of 1974 after what it described as a year-long investigation into Brazil’s trade practices.
The United States concluded that several Brazilian trade policies were “unreasonable and discriminatory,” harming the competitive position of American businesses and workers.
According to the USTR, the investigation found that Brazilian policies related to digital trade, electronic payment services, preferential tariffs for third countries, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation imposed unreasonable burdens on American farmers, workers, innovators, and exporters.
The USTR said it conducted two public hearings, received more than 360 public comments, and engaged in extensive negotiations with the Brazilian government in an effort to resolve US concerns.
“The USTR initiated this investigation at the direction of President Trump in order to explore unfair trading practices by Brazil with respect to digital trade, electronic payment services, unfair preferential tariffs toward third countries, anti-corruption enforcement, intellectual property protection, ethanol market access, and illegal deforestation,” US Trade Representative Jamieson Greer told reporters.
The tariffs are expected to affect thousands of Brazilian export products, although several major commodities—including beef, coffee, rare earth minerals, and aircraft parts—have reportedly been exempted. (ANI)
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