Brazil opens reciprocity process against US over tariffs

BRASILIA, Aug 13 (Reuters) – The Brazilian government has opened a process that could result in the adoption of reciprocal measures against the United States in response to tariffs recently imposed by Washington on the country’s goods, it said in a Thursday statement. 

The U.S. government announced tariffs of 25% last month on some Brazilian goods, alleging unfair trade practices, as well as 12.5% tariffs on goods from dozens of nations, including Brazil, linked to allegations of lax enforcement of forced labor bans.

Thursday’s preliminary step involves requesting further diplomatic consultations with U.S. trade authorities at a time when diplomatic relations between the two countries have turned increasingly sour. 

“The U.S. tariffs are unjustified and arbitrary, and Brazil will continue to defend its position in all appropriate forums,” the government said on Thursday. 

When the tariffs were announced in July, Brazilian President Luiz Inacio Lula da Silva promised to take the needed steps to invoke Brazil’s “Reciprocity Law,” which allows for retaliatory measures beyond tariffs on imports from the U.S., which officials see as likely to disrupt Brazilian ​supply chains or fuel domestic inflation.

Sources told Reuters in July that the government was reviewing ‌options that included curbs on U.S. audiovisual companies and a suspension of pharmaceutical and agricultural patents. 

(Reporting by Lisandra Paraguassu; Writing by Fernando Cardoso and Brendan O’Boyle, Editing by Iñigo Alexander)