Brazil seeks WTO consultations over Trump's hefty tariffs

On August 6, 2025, Brazil took a significant step amid rising tensions with the United States by requesting consultations at the World Trade Organization regarding tariffs imposed by U.S. President Donald Trump. The tariffs, which recently surged as part of Trump's broader economic strategy, have seen duties on many Brazilian goods increase from 10 percent to 50 percent. This move comes as part of a pressure campaign related to the ongoing judicial situation concerning former Brazilian President Jair Bolsonaro, who finds himself under house arrest due to legal proceedings. Brazilian authorities have estimated that approximately 35.9% of Brazilian exports to the U.S. are affected by these tariffs, directly impacting key sectors such as coffee, beef, and sugar. While a few exemptions exist, such as for orange juice and civil aircraft, the overall impact is still significant on the Brazilian economy. Analysts from Pantheon Macroeconomics have calculated that the average effective tariff rate for U.S. imports is expected to rise to nearly 20 percent, marking the highest level seen since the 1930s. Despite the challenging circumstances, Brazilian Vice President Geraldo Alckmin previously indicated that the new tariff regime would only apply to about 36% of the country’s exports to the U.S. Moreover, there are almost 700 exemptions in the tariff list, suggesting that while tariffs are burdensome, Brazil might have expected a more severe outcome. Valentina Sader from the Atlantic Council commented that Brazil’s economy could likely withstand the increased duties. The implications of these tariffs are profound, not only for bilateral relations but also for Brazil’s trade strategy moving forward. President Luiz Inácio Lula da Silva has been assertive about Brazil's position, indicating a readiness for negotiations but rejecting any foreign intervention. Lula emphasized the need for the World Trade Organization to reform to be more effective in mediating such international trade conflicts. As tensions continue, it remains uncertain how the upcoming consultations at the WTO will unfold, and whether Brazil can effectively counter the tariff measures imposed by the U.S.