The United States accepted Brazil’s request at the World Trade Organization (WTO) to open consultations on President Donald Trump’s new tariff hike, but quickly moved to limit the scope of discussion. In a document released on Monday (18), Washington argued that parts of Brazil’s complaint touch on “national security”.
“The President determined that these actions were necessary to address the national emergency caused by large and persistent annual trade deficits in goods with trading partners, which threaten the national security and economy of the United States,” the U.S. filing said. Despite this claim, Brazil maintains that the bilateral trade balance remains favorable to the U.S.
Brazil formally requested consultations at the WTO on August 6, the same day Trump’s tariff package took effect, raising duties to 50% on a wide range of imports from Brazil. The Ministry of Foreign Affairs (Itamaraty) stated that the move was the first step toward potentially launching a dispute panel within the WTO. In its filing, Brazil accused Washington of “flagrantly violating” core commitments such as the most-favored-nation principle and agreed tariff ceilings.
Impact of tariffs
The 50% surcharge affects Brazilian exports including natural stones (marble and granite), coffee, meat, fruits, clothing, and footwear. According to Brazilian authorities, about 36% of the country’s exports to the U.S. fall under the new tariff regime. However, the White House left out 694 products, among them orange juice, aircraft, and cellulose, which make up the bulk of Brazil’s exports to the U.S.
