Brazil calls U.S. forced labor tariff threat 'absurd,' vows retaliation

Brazil's government has strongly denounced a potential U.S. tariff on imports, stemming from allegations of forced labor, labeling the scenario as "absurd." The administration of President Luiz Inácio Lula da Silva conveyed its "deep disagreement" with preliminary conclusions from the U.S. Trade Representative's Office, which proposed a 12.5% tariff on products from 59 countries and the European Union, including Brazil.

In a statement, the Brazilian government called it "regrettable" that U.S. authorities would use a sensitive issue like forced labor as a "justification" for "unilateral protectionist measures." The government asserted its commitment to combating forced labor through inspections and accountability, expressing confidence that the preliminary U.S. recommendations would not result in effective tariffs. However, it warned that if the threat materializes, Brazil would respond with reciprocity against measures "without basis in the rules of international trade."

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It is absurd to try to associate the competitiveness of the Brazilian economy with external inputs obtained through trade that violates human dignity.

The potential forced labor tariff adds to a separate 25% tariff proposed by the U.S. Trade Office following an investigation into alleged unfair competition practices in Brazil. President Lula reacted with indignation, stating, "We are going to fight so that this country is not treated like an insignificant little republic." He also suggested that his rival, presidential candidate Flávio Bolsonaro, might be behind the tariffs to damage his electoral prospects, a claim Bolsonaro has denied.

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We are going to fight so that this country is not treated like an insignificant little republic. We are very big. We have a lot of history and we cannot accept the treatment that the U.S. gave Brazil this week.