Brazil has rejected the U.S. decision to impose a 12.5% tariff on its exports, calling the action arbitrary and unjustified. The government accused the U.S. of masking protectionist aims with human-rights rhetoric and said it will invoke its Reciprocity Law to authorize retaliatory measures. Brazil also plans to file a formal complaint with the World Trade Organization's dispute-settlement mechanism.
Brazil Rejects U.S. 12.5% Tariff, Vows WTO Challenge
(Associated Press)
Brazil on Thursday denounced the U.S. decision to impose a 12.5% tariff on Brazilian exports under a newly announced forced-labor enforcement program, calling the measure "completely arbitrary" and "unjustified."
In an official statement, Brasília accused Washington of using human-rights rhetoric as a pretext for trade protectionism. The statement said the U.S. Trade Representative "lacking a legal basis under domestic law to support its protectionist trade policy, chose to manipulate an issue of great importance to human rights and workers' rights movement."
"Lacking a legal basis under domestic law to support its protectionist trade policy, the U.S. Trade Representative chose to manipulate an issue of great importance to human rights and workers' rights movement."
Brazil said it would immediately initiate procedures under its Reciprocity Law, which authorizes retaliatory measures in response to unilateral trade restrictions, and intends to bring the dispute to the World Trade Organization's dispute-settlement mechanism.
The announcement followed President Donald Trump's broader trade enforcement program, which applied tariffs of 10% to 12.5% on imports from 60 trading partners; Brazil was assigned the highest 12.5% rate.
Officials in Brasília warned the move could escalate trade tensions and said Brazil will pursue both legal avenues at the WTO and diplomatic channels to protect exporters while seeking a resolution.
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