Brazil Files Formal Complaint with WTO Against US Tariffs

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TEMPO.CO, Jakarta - The government of Brazil officially requested consultation with the World Trade Organization (WTO) on Wednesday, August 6, 2025, regarding the import tariffs imposed by the United States on Brazilian products, according to a statement from the Ministry of Foreign Affairs.

The request submitted to the U.S. mission in the organization is the first official step in the dispute between the two countries.

"Brazil has filed a request for consultations with the United States of America (USA) under the World Trade Organization (WTO) Dispute Settlement System," the Ministry of Foreign Affairs statement said, as quoted in Anadolu.

President Luiz Inacio Lula da Silva had announced that his government would file an official complaint with the WTO to overturn the U.S. import tariffs, which he believed violated international trade rules.

President Donald Trump imposed a 50 percent tariff on Brazilian imports to the U.S., a move he linked to what he called a "witch hunt" against his political ally, former President Jair Bolsonaro, who is currently on trial for alleged coup plans after his defeat in the 2022 elections.

Tariffs will affect about 36 percent of Brazil's exports to the United States, according to estimates from Brazil's Ministry of Development, Industry, and Trade (MDIC).

As reported by France24, Trump's latest tariff onslaught raised the duties on Brazil, from 10 percent to 50 percent for key exports, including coffee, beef, and sugar.

Almost 700 other export items, including civilian aircraft, orange juice and pulp, Brazil nuts, and some iron, steel, and aluminum products, were exempted.

"By imposing these measures, the US flagrantly violates core commitments made by that country to the WTO, such as the most-favored-nation principle and the tariff ceilings negotiated within that organization."

Although the lawsuit has been formalized, the WTO's appellate body has been paralyzed in adjudicating appeals since December 2019, when the U.S. began systematically blocking the appointment of new judges.

Trump's imposed tariffs on Brazil are among the highest imposed on US trading partners. They are framed in open political terms, sweeping away centuries-old trade ties and Brazil's $284 million surplus from the previous year.

Meanwhile, Brazil's Vice President Geraldo Alckmin ensured that "the country is ready to defend its trade interests through the WTO."

Alckmin also said that President Lula will determine the next steps from the consultations, which could lead to the filing of a formal complaint and the formation of an expert panel.

Brazil's government initiative also serves to strengthen its role in global trade and send a political message to the U.S. government. This initiative runs parallel to direct negotiation efforts between the two countries.

Furthermore, Brazilian Finance Minister Fernando Haddad announced a meeting with U.S. Treasury Secretary Scott Bessent on August 13 to discuss the tariffs. He stated that Lula's administration is preparing a support package for the affected sectors.

Bolsonaro's Effect

In a recent executive order, the Trump administration condemned Brazilian officials for "baseless criminal accusations" against Bolsonaro, who is being accused of planning to reclaim power after losing the 2022 presidential election to Lula.

The Trump administration also alleged that Lula's recent policies and actions pose a threat to the U.S. economy, national security, and foreign policy.

Tensions between the U.S. and Brazil seem unlikely to ease soon, with a Brazilian Supreme Court justice on Monday placing Bolsonaro under house arrest pending the outcome of his trial for violating social media bans.

Chief Justice Alexandre de Moraes, overseeing Bolsonaro's trial, was fined this week as Washington claimed he had "acted as judge and jury in an unlawful witch hunt."

Moraes has repeatedly clashed with right-wing groups in Brazil and with tech giant Elon Musk over online misinformation spread.

Bolsonaro faces decades in prison if found guilty of the alleged coup, which is also said to involve discussions to kill Lula and other senior officials.

The increase in tariffs on Brazilian goods occurred one day before higher tariffs were imposed on dozens of other countries, ranging from the European Union to Taiwan.

Analysts at Pantheon Macroeconomics estimate that the delayed tariff hikes will raise the average effective tariff for U.S. imports to nearly 20 percent.

This marks the highest level at least since the 1930s, according to the Budget Lab at Yale University.

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