Brazil President Lula authorises retaliation process against Trump’s tariffs

Lula has expressed frustration with a lack of dialogue with the Trump administration since US Treasury Secretary Scott Bessent canceled a meeting with Finance Minister Fernando Haddad earlier this month

Brazilian President Luiz Inacio Lula da Silva authorized the start of a process to retaliate against the 50% tariffs imposed by Donald Trump, Vice President Geraldo Alckmin said.

The US government will be formally notified of the decision on Friday, according to a person familiar with the matter, asking not to be identified without authorization to speak publicly. The move was reported earlier by O Estado de S. Paulo newspaper.

The plan, an initial step designed to encourage talks before escalating a trade war, was discussed during a meeting between Lula and cabinet ministers on Wednesday, the person said.

“I hope this helps accelerate dialogue and negotiation,” Alckmin said.

Brazil’s Chamber of Foreign Trade now has as many as 30 days to analyze the US measures and determine whether they fall under the reciprocity law passed by Congress earlier this year. If the chamber approves, a group of ministries will study which countermeasures to apply.

The law lets Brazil respond to unilateral actions by countries or economic blocs that harm the nation’s international competitiveness. Retaliation could include imposing tariffs, additional fees or restrictions on imports of goods and services, suspending trade and investment concessions, or suspending obligations related to intellectual property rights.

Lula said in a Friday morning radio interview that the process will take time and that he is “in no hurry” to retaliate against the US, reiterating that he remains open to negotiations with the Trump administration.

If Brazil chooses to respond, it is unlikely to do so with retaliatory tariffs on US goods, according to two officials with knowledge of the situation, both of whom cautioned that no final decision has been made. The view inside Lula’s government is that such levies would only hurt Brazilian consumers and the nation’s economy, one of the officials said.

Instead, its answer is likely to focus on US intellectual property, according to one of the officials, who said measures could include the suspension of patents. It has previously considered ending licensing of US drug patents in response to the tariffs, O Estado de S. Paulo reported in July.

Brazil’s Foreign Ministry hasn’t issued an official statement on the matter.

Lula has expressed frustration with a lack of dialogue with the Trump administration since US Treasury Secretary Scott Bessent canceled a meeting with Finance Minister Fernando Haddad earlier this month.

Brazil is open to talks “the moment they want to negotiate,” Lula said Thursday. “So far, we haven’t been able to speak with anyone from the US.”