The Brazilian government filed a request for consultations with the World Trade Organization (WTO) on Wednesday (Aug. 6) in response to the new tariffs imposed by the United States on Brazilian products. The move comes on the same day that the tariff package, announced by U.S. President Donald Trump, officially takes effect, raising import taxes on a wide range of Brazilian goods to 50%.
In a statement, Brazil’s Foreign Ministry said the request is the first step before opening a formal WTO panel – the organization’s dispute settlement mechanism. The complaint challenges the new U.S. measures, arguing that they “flagrantly violate core commitments undertaken by that country at the WTO, such as the most-favored-nation principle and the bound tariff rates negotiated under the organization’s framework.”
Brazil also reiterated its commitment to dialogue and said it hopes the consultations will help resolve the issue. In the coming weeks, both countries are expected to schedule meetings as part of the WTO process.
The legal move is backed by a government resolution issued Tuesday (Aug. 5), authorizing the Foreign Ministry to use WTO mechanisms to challenge the U.S. tariffs.
New tariffs hit key exports
The 50% import tax came into effect at midnight on Wednesday. It targets Brazilian exports such as natural stones, coffee, meat, fruits, clothing, and footwear. According to Brazil’s government, 36% of all Brazilian exports to the U.S. are now subject to the surcharge. However, the White House excluded 694 items from the list – including orange juice, airplanes, and cellulose, which represent a large share of Brazil’s exports.
Earlier this year, in April, Trump had already imposed a 10% tariff on Brazilian goods. The recent 40% increase, bringing the total to 50%, has been presented as an economic measure – but Trump openly framed it as a political decision. When making the announcement, the U.S. president defended former Brazilian president Jair Bolsonaro (Liberal Party), who is facing trial before Brazil’s Supreme Federal Court (STF) for attempting a coup after losing the 2022 election.
“The order considers that the persecution, intimidation, harassment, censorship, and politically motivated prosecution by the Brazilian government against former president Jair Bolsonaro and thousands of his supporters constitute serious human rights violations that have undermined the rule of law in Brazil,” read an official statement from the White House.
The same statement directly named Justice Alexandre de Moraes, the STF judge overseeing Bolsonaro’s case. It accused Moraes of “abusing his judicial authority to threaten, target, and intimidate thousands of political opponents, shield corrupt allies, and suppress dissent.”
Justice Moraes was sanctioned under the Global Magnitsky Act, which allows the U.S. government to impose financial sanctions on foreign nationals accused of large-scale corruption or gross human rights violations. Sanctions may include asset freezes, financial restrictions, and bans on transactions with U.S. individuals or companies. Moraes does not hold assets or investments in the United States.
Brazil invokes reciprocity law
In response, President Luiz Inácio Lula da Silva’s government signed a decree in July activating the so-called “Reciprocity Law,” which allows Brazil to take countermeasures in response to hostile or disadvantageous trade actions. The goal is to protect domestic industries and restore balance in foreign trade relations.
The law enables the government to suspend the WTO’s “most-favored-nation” (MFN) principle, which guarantees equal trade treatment among all WTO members.
Finance Minister Fernando Haddad stated last week that the tariffs are already having “dramatic” effects on Brazil’s economy. As a result, the government is seeking to negotiate the full reversal of the measures with the United States, while also discussing domestic relief policies.
Among the proposals under consideration are emergency loans, tax breaks, and public purchases of goods originally intended for export. Haddad said the government expects to present its plan to the presidential palace later this Wednesday.
