Brazil to Avoid Retaliation on U.S. Tariffs, Citing Negotiation Preference

Brazil's government has decided against retaliating against the United States' imposition of a 25% tariff on several of its products, a move that will take effect Wednesday. Initially, Brazilian President Luiz Inácio Lula da Silva had vowed to enact a reciprocity law in response to the tariff announced last week.

However, the tone from Brasília has softened. "The idea is not to retaliate. (In an) eye for an eye, what can happen is that both will end up blind," said Vice President Geraldo Alckmin during a press conference. He added that Brazil would always be open to negotiation.

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The idea is not to retaliate. (In an) eye for an eye, what can happen is that both will end up blind.

Alckmin's remarks followed a meeting with industry leaders from sectors affected by the tariffs, including footwear and machinery manufacturers. These business representatives opposed activating the reciprocity law, which was unanimously approved by Congress in April 2025. This law was intended as a response to the tariff offensive initiated by the Trump administration against numerous countries.

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In what depends on Brazil, there will always be negotiation.

Brazil, the largest economy in Latin America, finds itself among the nations most significantly impacted by this latest round of U.S. tariffs. The Trump administration is reportedly seeking to reshape its trade agenda after facing several legal challenges that nullified previous duties. Washington claims the 25% tariff is a response to Brazil's "unfair trade practices" that hinder the import of U.S. products.

Alckmin described the U.S. measure as "unjust and totally unreasonable," pointing out that the trade balance already shows a surplus in favor of the United States. Brazil is also among several countries that may soon face a 12.5% tariff for not prohibiting the import of goods produced through forced labor. With presidential elections less than three months away, these tariffs are emerging as a significant campaign issue, fueling conflict between Lula and Senator Flávio Bolsonaro, the son and political heir of former President Jair Bolsonaro.

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the measure is unjust and totally unreasonable