In response to the U.S. with President Donald Trump’s new tariffs of 10% on Brazilian products Brazil’s Congress has passed “Economic Reciprocity law” with the intention to retaliate to avoid unfair trade restrictions. It comes after the Senate vote, and is the Brazilian legislature’s willingness to respond to Donald Trump’s protectionist stances following unanimous backing by House of Representatives this week.
The Foreign Ministry said it regrets the U.S. tariffs, and “Brazil is considering all options including WTO compliance which obviously includes taking all procedural and remedial action… As the second largest steel exporter to the U.S. (4 million tonnes in 2024) Brazil is under considerable economic risk.
President Luiz Inácio Lula da Silva, who spoke from Tokyo last week, stated that Brazil “will not remain inactive” against the tariffs. The new law permits countermeasures like suspending trade perks — investment restrictions, punishment from U.S. companies now operating in China — and changes to its intellectual property, though lawmakers say it’s a negotiation, not harsh retaliation. 
In a rare sign of bipartisanship, even the far-right ex-President Jair Bolsonaro’s party voted for the bill, highlighting the rare unity in deeply polarized Brazilian politics. Analysts predict worsening trade rivalry as Trump’s “fair rate” policy from afar, moves in India too as charged 26% heft.
With immediacy, the relief is assigned to Brasil’s Chamber of Foreign Trade and sets the stage for an economic battle royale.
