BRAZILIA: Brazil is considering retaliatory trade measures against the United States, including tariffs, after President Donald Trump imposed 50 per cent levies on a range of Brazilian imports, government sources told AFP on Thursday (Aug 28).
President Luiz Inacio Lula da Silva gave his approval for a study of which retaliatory actions – if any – Brazil could take for the punishment imposed by Trump over the coup-plotting trial of his ally Jair Bolsonaro, two government sources said.
The Ministry of Trade and Industry will have 30 days to determine whether the US tariffs fall under a recent Economic Reciprocity Law.
If they do, a group of experts will propose countermeasures, which could include reciprocal tariffs, a diplomatic source said.
The Brazilian government will formally notify the United States on Friday of its decision to examine possible reprisals, the source added.
“The space for diplomatic consultations remains open,” the source added.
The Economic Reciprocity Law, adopted in April, allows the government to take “countermeasures” against countries that unilaterally act to harm Brazil’s competitiveness.
The measures include suspending trade concessions, investments or intellectual property agreements.
They are intended as actions of last resort in the event that negotiations with the other country or trading bloc fail.
Relations between the United States and Brazil have been at an impasse since the 50 per cent tariffs on Brazilian coffee and other goods took effect on Aug 6.
Source: CNA
