Brazil Begins Retaliation Review Against US Tariffs

Brazil has formally initiated a process that could lead to retaliatory measures against the United States in response to new American tariffs, marking a significant escalation in trade tensions between the two largest economies in the Americas. The Brazilian government announced on August 13, 2026, that it had opened a formal review under its Economic Reciprocity Law to assess possible countermeasures.

The move comes in direct response to a 25 percent tariff the United States imposed on a range of Brazilian imports, including sugar, apparel, paper, and machinery, which took effect on July 22, 2026. An additional 12.5 percent duty was also applied to some products, a measure Washington has tied to allegations of lax enforcement of forced labor bans. Brazil has rejected both sets of tariffs as unjustified and arbitrary.

The formal process, managed through Brazil's foreign trade board Camex, is the first concrete step toward potential retaliation. It does not immediately impose any new costs on American goods. Instead, it launches a technical review and requests diplomatic consultations with Washington. The Brazilian Foreign Ministry is expected to formally notify the U.S....