Brazil Strikes Back: Reciprocity Law Targets U.S. Tariff Hikes
Brazil prepares to use its reciprocity law against the U.S. after President Trump enforced a 50% tariff on Brazilian imports. This move, announced by Vice President Geraldo Alckmin, could escalate trade tensions, though Brazil remains open to negotiations. Camex has 30 days to report on the situation.
Brazil's response to recent U.S. tariffs could incite a trade showdown, with the Foreign Ministry directing Camex to evaluate potential countermeasures under a newly passed reciprocity law. President Donald Trump's decision to impose tariffs on Brazilian imports has set the stage for possible retaliatory steps from the South American nation.
Vice President Geraldo Alckmin highlighted Congress's overwhelming support for the law, underscoring its importance as a tool for Brazil's trade defense. "Congress passed the law almost unanimously. It's an important and necessary instrument," Alckmin stated during a visit to Mexico City.
The União has signaled its willingness to discuss and deescalate the situation with the U.S. The outcome of the process, which involves a report from Camex within 30 days, could lead to Brazil targeting specific U.S. sectors in response. Discussions remain on the table, with hopes for resolution through dialogue.
(With inputs from agencies.)
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