SAO PAULO, July 27 - Brazil has asked for consultations with the United States under the World Trade Organization’s dispute settlement procedures in reaction to tariffs announced this month by the Trump administration, the Brazilian Foreign Relations Ministry said in a statement on Monday.
The request targets two sets of U.S. measures. One imposes 25% duties on imports of certain Brazilian products on the basis of alleged unfair trade practices. The other applies tariffs of up to 12.5% on goods from dozens of countries, including Brazil, linked to claims that those countries have not enforced bans on forced labor rigorously enough.
In its statement, Brazil described the U.S. measures as "unjustified and inconsistent" with Washington’s commitments under the WTO’s General Agreement on Tariffs and Trade 1994 and the Understanding on Rules and Procedures Governing the Settlement of Disputes. The government of President Luiz Inacio Lula da Silva had previously indicated it would bring the issue to the WTO.
Brasilia’s move mirrors actions taken last year in response to an earlier round of tariffs announced under the same administration. That earlier challenge culminated in U.S. domestic litigation that ultimately led to the U.S. Supreme Court striking down the prior measures, according to the statement.
The consultation request is the formal first step in WTO dispute settlement, signaling Brazil’s intent to challenge the legality of the tariffs at the multilateral body rather than resolving the disagreement bilaterally. The Brazilian Foreign Relations Ministry characterized the tariffs as incompatible with obligations set out in WTO agreements governing tariffs and dispute resolution.
This development maintains the trade dispute channel between the two countries. Brazil’s approach follows the procedural pathway established by the WTO for members contesting measures they consider to contravene trade rules.
Context note - The government statement specifies the tariff levels involved and the legal instruments Brazil says the U.S. measures violate. Beyond declaring the measures unjustified and inconsistent with WTO rules, the statement reiterates Brasilia’s intention to pursue the matter through formal WTO procedures.