Brazil Considers Reciprocal Measures in Response to US Tariff Hike

The Brazilian government is preparing to discuss reciprocal trade measures after the US announced a 50% tariff hike on Brazilian products. President Lula has directed the Ministries of Foreign Affairs, Industry, and Finance to analyze targeted responses, aiming to avoid widespread economic disruption. Business leaders worry that reciprocity laws could raise import costs or harm negotiations with the US.

Among the options under review are sector-specific actions, including potential suspensions of intellectual property rights in pharmaceuticals and agriculture. However, the Health Minister recently denied any plans to break drug patents. The Reciprocal Measures Law, passed earlier this year, was activated shortly after the US tariff announcement, signaling Brazil’s readiness to respond.

The debate highlights tensions in US-Brazil relations, with Lula’s administration seeking a balanced approach to protect domestic industries without escalating trade conflicts. Meanwhile, businesses fear prolonged uncertainty as both nations navigate the economic and political fallout of the tariff dispute.

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