The United States’ adoption of new tariff measures against Brazilian products has once again brought the possibility of a trade response by Brazil to the forefront of the debate. In this context, what instruments are available to Brazil to respond to unilateral trade measures?
In July 2026, the United States announced additional tariffs of 25% and 12.5% on certain imports originating in Brazil, based on Section 301 of its trade legislation. According to the Ministry of Development, Industry, Trade, and Services (MDIC), the combined measures affect 23.1% of Brazilian exports to the United States. [1]
One alternative lies within the multilateral trading system. Brazil can invoke the World Trade Organization’s (WTO) dispute settlement mechanism to challenge the compatibility of the U.S. measures with the obligations assumed under the organization. In fact, in late July, the country initiated formal consultations at the WTO, arguing that the additional tariffs imposed by the United States exceed the tariffs that would otherwise apply under the U.S. Harmonized Tariff Schedule. [2] The use of this mechanism, however, takes place within a challenging institutional context: the WTO Appellate Body remains unable to hear appeals due to a lack of members, which undermines its effectiveness.
At the domestic level, Brazil also has Law No. 15,122/2025, known as the Economic Reciprocity Law, which establishes mechanisms for responding to unilateral measures, policies, or practices by other countries that impact Brazil’s international competitiveness.
On August 14, the Brazilian government began the analysis required by law regarding the measures adopted by the United States. The initiation of the procedure, however, does not imply the immediate adoption of countermeasures: the mechanism provides for stages of analysis and consultations—including diplomatic ones—before any applicable measures are ultimately determined.
The discussion on retaliation, therefore, is not limited to the legal possibility of adopting countermeasures. Defining a potential response also involves—and perhaps primarily involves—an assessment of its economic impacts, effects on businesses and consumers, the degree of interdependence between markets, compatibility with international commitments, and possible repercussions on bilateral negotiations.
In this scenario, retaliation, negotiation, and multilateral action are not necessarily mutually exclusive alternatives. The question, therefore, is not merely whether Brazil should retaliate, but whether—and how—any retaliation might be used as a negotiating tool.
[1] Available at: https://www.gov.br/mdic/pt-br/assuntos/noticias/2026-periodo-eleitoral/julho/alcance-das-medidas-tarifarias-dos-estados-unidos-sobre-exportacoes-brasileiras.
[2] Available at: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds646_e.htm.
