WTO Confirms: Brazil Files Lawsuit Against US Over So-Called "Reciprocal Tariffs" and Other Measures

Brazil stated that the US has imposed a 10% tariff on all Brazilian products and an additional 40% tariff on some Brazilian-origin goods. A First Financial reporter noted that the communication document for the dispute consultation request was distributed to WTO members on August 11.

According to CCTV, on August 5 (local time), Brazilian President Lula stated that the US President has no right to impose a 50% high tariff on Brazil. The Brazilian government will protect affected workers and businesses, using all available means, starting with filing a complaint with the World Trade Organization (WTO) to defend national interests.

In the document, Brazil wrote that on April 2, 2025, the US President signed Executive Order No. 14257, which claimed that the persistent large US trade deficit in goods was primarily due to a lack of reciprocity in US bilateral trade relations.

The communication document revealed that on July 9, 2025, the US President sent a letter to the Brazilian President, stating that starting August 1, 2025, the US would impose a 50% tariff on all Brazilian imports. "The letter provided reasons for this decision, but these reasons appear entirely unrelated to the economic relations between Brazil and the US or the subject of the agreements involved."

The document also showed that the US President stated he had instructed the US Trade Representative (USTR) to "immediately initiate a Section 301 investigation into Brazil" and demanded that Brazil eliminate unspecified "tariffs, non-tariff policies, and trade barriers" as a condition for restoring its access to the US market.

On July 15, the USTR office launched a Section 301 investigation into Brazil’s so-called "unfair trade practices against US social media companies and other actions harming US companies, workers, farmers, and technology innovators." Subsequently, on July 30, the US President issued an executive order titled "Addressing the Threat Posed by the Brazilian Government to the United States," reiterating the allegations made in the July 9 letter.

The executive order claimed that the Brazilian government’s so-called "policies, practices, and actions constitute an unusual and extraordinary threat to US national security, foreign policy, and economy" and declared a "national emergency" related to this alleged threat.

In response to the so-called "national emergency," the executive order imposed an additional 40% ad valorem tariff on certain Brazilian-origin products. As a result, some Brazilian imports into the US now face a 50% tariff.