Brazil starts formal process to assess US tariff retaliation

Brazil's Foreign Ministry has ordered trade body Camex to start analyzing whether a local reciprocity law could be used against the United States after U.S. President Donald Trump imposed steep tariffs on several goods from the South American country.

The law, passed earlier this year by Brazil's Congress, establishes a legal framework for Brazil to respond to potential unilateral trade measures targeting its goods and services, including countermeasures such as tariffs.

"A process will be initiated," Vice President Geraldo Alckmin told reporters late on Thursday during a trip to Mexico City. "Congress passed the law almost unanimously. It’s an important and necessary instrument."

The move would represent an escalation by Latin America's largest economy in reacting to Trump's 50% tariffs on US imports from Brazil. The country had so far initiated dispute consultations at the World Trade Organization.

Alckmin noted, however, that Brazil remains open to talks with the Trump administration. "I hope this helps accelerate dialogue and negotiation," he said.

Reuters reported earlier on Thursday, citing sources, that Camex had been ordered to launch the process. The move came as President Luiz Inacio Lula da Silva authorized the use of the law against the US, the sources said.