Measure was announced on Sunday (13) by the vice president and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin (PSB), during an event in São Paulo
The Brazilian government promises to publish by Tuesday (15) the decree regulating the so-called reciprocity law, an instrument that will allow the country to retaliate the 50% surcharge imposed by Brazilian products. The measure was announced on Sunday (13) by the vice president and Minister of Development, Industry, Commerce and Services, (PSB), during an event in São Paulo. According to Alckmin, despite the preparation to respond to, the government’s priority is still to reverse the decision before its entry into force, scheduled for August 1.
“We believe this fare is inadequate and finds no justification,” said the vice president, who also highlighted the historical ties between the two countries. “Brazil and the USA have 200 years of friendship. It makes no sense to this unilateral measure,” he said. The measure announced by was communicated by letter sent directly to President Luiz Inacio Lula da Silva (PT) and published on his profile on the social network Truth Social. In the text, the former US president claims that the business relationship between the two countries is “unfair” and “non-reciprocal.” He also criticizes the Federal Supreme Court’s performance and the regulation of those in Brazil.
Official data, however, show that the US have maintained commercial surplus with Brazil for 17 years – that is, export more than matter from the country. Lula summoned a meeting this Sunday (13) to discuss the Brazilian reaction. He has repeated that Brazil will not accept being treated unevenly. “We are a large, sovereign country with historical diplomatic traditions. The Brazilian people need to be respected,” wrote the president on social networks.
Last Thursday (10), Lula stated that if there is no agreement until August 1, the Reciprocity Law will be applied. He also defended the use of diplomatic and legal channels before retaliation. “I do not make a decision with a hot head. Let’s turn on the WTO and argue with other countries to know who is right,” he said in an interview with National newspaper.
Understand the Law of Reciprocity
Approved by Congress and sanctioned by Lula, the reciprocity law is the new legal instrument that allows Brazil to react to commercial barriers imposed by other countries. Until then, the only alternative was to resort to the World Trade Organization (WTO). The legislation authorizes the government to adopt a series of measures, including:
- Application of overcrowders on imported goods and services;
- Suspension of commercial agreements or obligations;
- In exceptional situations, suspension of intellectual property rights, such as patent recognition or royalties payment.
The decree that will be published in the coming days will regulate how these measures can be applied. Meanwhile, Lula intends to meet with industry representatives and exporters affected by tariffs to evaluate the impacts of the American measure and coordinate the response. An interministerial committee, led by Alckmin, must centralize the conduct of negotiations and retaliation measures if necessary.
In the letter sent to Lula, Trump said he could review the rates if Brazil “open its markets” and eliminates commercial barriers. At the same time, he warned that he will retaliate any response measure with new elevations in rates on Brazilian products. The Brazilian government, however, stresses that it will not accept threats. “What Brazil does not accept is intrusion. [Trump] It has the right to make decisions in defense of his country, but based on the truth, ”said Lula.
Published by Felipe Dantas
*Report produced with the aid of AI
