BRASILIA - Brazil's Congress on Wednesday passed a bill that allows the government to impose reciprocal trade and environmental measures against foreign restrictions, just hours after US President Donald Trump announced a new 10 percent tariff on all Brazilian imports.
The bill, approved in the Chamber of Deputies a day after clearing the Senate, now awaits presidential ratification. It was fast-tracked through both houses with support from lawmakers across the political spectrum.
Initially drafted in response to unilateral environmental trade rules from the EU, the legislation was later broadened amid growing concern over escalating trade tensions with the United States.
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The final version authorizes the government to respond to any country or economic bloc that imposes trade or environmental measures deemed harmful to Brazilian exports or global competitiveness in agriculture and across industries.
Under the new law, Brazil's Foreign Trade Chamber will be empowered to impose countermeasures, such as trade restrictions, suspension of concessions, or review obligations under investment and intellectual property agreements.
However, automatic retaliation is off the table as the legislation requires a round of diplomatic consultations, coordinated by the foreign ministry, before any formal action is taken.
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The shift signals a firmer posture from Brasilia in the face of mounting protectionist policies abroad, especially from the United States, which has moved to raise tariffs on key imports under the banner of "reciprocal trade."
Shortly after Trump's latest announcement, Brazil's foreign ministry issued a strongly-worded statement condemning the move, saying the tariffs violate Washington's obligations under the World Trade Organization (WTO).
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According to Brazilian officials, the United States ran a trade surplus of $7 billion with Brazil in goods in 2024 and a $28.6 billion surplus when services are included, making it one of the largest trade imbalances in the US favor globally.
"Given this longstanding and significant surplus, the claim that these new tariffs are about restoring balance is simply not supported by the facts," the ministry said.
Officials warned that Brazil remains open to dialogue with Washington but is prepared to pursue all legal and diplomatic avenues, including a possible WTO complaint, to defend its economic interests.
