The vice-presidency office reported that until next Monday, July 14, the decree regulating the economic reciprocity law will be published. The measure is a response to the decision of US President Donald Trump, who announced the application of a 50% rate on Brazilian products from August 1.
The decree will be signed by President Luiz Inacio Lula da Silva (PT) and aims to allow equivalent commercial retaliation against the United States, as provided for in the law sanctioned in April this year. The standard had already been approved with broad support in Congress and authorizes the Brazilian government to apply proportional measures whenever another country adopts unilateral economic sanctions against Brazil.
In addition to regulation, the government has also created a crisis committee that will be coordinated by Vice President Geraldo Alckmin. The group’s mission is to define the strategies of reaction to tariff in articulation with entrepreneurs from the most impacted sectors, such as agribusiness and industry.
The guest list is still under preparation, but it is already confirmed that representatives of production chains such as beef, orange juice, coffee, technology and aviation sector will participate, including Embraer. The group will also discuss market alternatives to export Brazilian products if negotiations with the United States do not advance.
The commercial tension began with the announcement of the surcharge by Trump, which justified the measure alleging an alleged US deficit in exchanges with Brazil and citing the trial of former President Jair Bolsonaro as an “international shame.”
Lula, in turn, classified the accusation as unfounded and defended a firm reaction: “Let’s apply reciprocity. He taxed here, let’s tax,” he said after a meeting with ministers last week.
The president also stressed that Brazil does not accept to be protected and that eventual commercial imbalances should be resolved based on official data – which, according to the government, point out American surplus in bilateral relations.
