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Brazil will respond to Trump's 50% tariff with 'reciprocity,' says da Silva

BRAZIL, JUL 11 – Brazilian President Lula vows retaliatory tariffs under new reciprocity law after U.S. imposes 50% duties on exports amid political disputes and trade tensions, affecting key sectors.

  • On August 1, 2025, U.S. President Donald Trump announced a 50% tariff on all imports from Brazil amid escalating diplomatic tensions.
  • Trump's tariff decision followed his criticism of Brazil's judiciary over former President Jair Bolsonaro's criminal trial, which he urged to end.
  • Brazilian President Luiz Inácio Lula da Silva rejected Trump's claims as attacks on sovereignty and vowed to respond with equal tariffs under Brazil's Economic Reciprocity Law.
  • Bilateral trade between the countries was $92 billion in 2024 with a rare $7.4 billion U.S. trade surplus, while experts warned that unilateral tariffs risk a damaging trade war.
  • The tariff conflict threatens to intensify trade tensions, potentially disrupting economic relations and encouraging Brazil to reduce reliance on the U.S. market.
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Proceso broke the news in Mexico on Wednesday, July 9, 2025.
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