Brazil activates its Economic Reciprocity Law to counter US tariffs, allowing suspension of trade concessions. Learn how this impacts bilateral relations and key export sectors.

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Brazil has taken a significant step in its trade policy by officially enacting its “Economic Reciprocity Law”—a direct response to tariffs imposed during Donald Trump’s administration that have hurt Brazilian exports to the US.

Recently signed into law by President Luiz Inácio Lula da Silva without vetoes after congressional approval, this legislation empowers Brazil to counteract unilateral trade measures threatening its

economy.

The law allows Brazil to suspend trade concessions, investments, and intellectual property obligations in response to foreign policies that undermine its international competitiveness. It comes as Brazilian goods face a 10% tariff in the US market, with steel and aluminum hit by even steeper 25% duties.

Designed to minimize domestic economic disruption, the law balances national interests with economic stability. While defensive in nature, it includes provisions for “diplomatic consultations” to potentially reverse countermeasures—signaling Brazil’s openness to dialogue despite its firm stance.

This move not only counters US trade policies but also reaffirms Brazil’s commitment to shielding its economy from external pressures. By wielding this new tool, the Brazilian government aims to strengthen its global trade position and secure fairer conditions for its exports.

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