2 weeks ago
Brazil opens reciprocity process against US over tariffs
The United States put extra taxes, called tariffs, on some things that Brazil sells to America.
Tariffs make those goods more expensive to buy.
The U.S. says Brazil was not playing fair in trade and did not do enough to stop forced labor.
Brazil thinks these taxes are unfair.
So Brazil's leader, President Lula, promised to fight back.
Brazil has a special law called the 'Reciprocity Law' that lets it respond.
That response could mean new taxes on American products.
Brazil might also limit American movies and TV shows or pause patents protecting American medicines and farm seeds.
Brazil is first asking to talk with U.S. trade officials.
The two countries are not getting along very well right now.
Brazil has opened a process that could lead to reciprocal measures against the U.S. over recently imposed tariffs.
The U.S. imposed 25% tariffs last month on some Brazilian goods, alleging unfair trade practices.
Washington also applied 12.5% tariffs on goods from dozens of nations, including Brazil, over alleged lax enforcement of forced labor bans.
Brazil called the tariffs 'unjustified and arbitrary' and said it will defend its position in all appropriate forums.
President Lula has vowed to invoke Brazil's 'Reciprocity Law,' with possible steps including curbs on U.S. audiovisual companies and suspension of pharmaceutical and agricultural patents.
- Who
- The Brazilian government and President Luiz Inacio Lula da Silva, acting against the U.S. government.
- What
- Brazil opened a process that could result in reciprocal measures against U.S. tariffs on Brazilian goods.
- Where
- Brazil (statement issued from Brasilia); the measures target the United States.
- When
- The process was opened in a Thursday statement (August 13), after the U.S. announced the tariffs in July.
- Why
- In response to U.S. tariffs of 25% and 12.5% on Brazilian goods, which Brazil calls unjustified and arbitrary.
Backers of Retaliation
Backers of Caution
Are the U.S. tariffs justified?
Backers of Retaliation
Brazil calls the tariffs 'unjustified and arbitrary' and says it will defend its position in all appropriate forums.
Backers of Caution
The U.S. says the tariffs respond to unfair trade practices and lax enforcement of forced labor bans.
How should Brazil respond?
Backers of Retaliation
Invoke the 'Reciprocity Law' with measures such as curbs on U.S. audiovisual companies and suspension of pharmaceutical and agricultural patents.
Backers of Caution
Be careful: retaliatory measures could disrupt Brazilian supply chains or fuel domestic inflation.
Key facts
- Brazilian action
- Opened a process that could result in reciprocal measures against the U.S.
- Preliminary step
- Requesting further diplomatic consultations with U.S. trade authorities
- U.S. tariff on some Brazilian goods
- 25%, alleging unfair trade practices
- U.S. tariff tied to forced labor allegations
- 12.5% on goods from dozens of nations, including Brazil
- When tariffs were announced
- July
- Brazil's law
- The 'Reciprocity Law,' allowing retaliatory measures beyond tariffs
- Possible retaliatory options
- Curbs on U.S. audiovisual companies; suspension of pharmaceutical and agricultural patents
- Brazil's position
- Tariffs are 'unjustified and arbitrary'
Quotes
Brazilian government spokesperson
Representatives of the Brazilian government
“"The U.S. tariffs are unjustified and arbitrary, and Brazil will continue to defend its position in all appropriate forums."”
theprint.in
Sources
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