Brazil has formally requested dispute consultations with the United States at the World Trade Organisation (WTO) over new import duties it says breach global trade rules.
The measures, introduced from August 1, impose a 10% tariff on all Brazilian goods and an additional 40% duty on certain products, effectively creating a 50% rate for some imports.
In its submission, Brazil argues the move violates US obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO’s Dispute Settlement Understanding (DSU), accusing Washington of bypassing agreed dispute mechanisms in favour of unilateral tariffs.
The request cites a July 5 letter from US President Donald Trump to Brazil’s president, which allegedly links the tariff decision to issues unrelated to trade. These include the trial of former Brazilian leader Jair Bolsonaro and actions by Brazil’s Supreme Court against US social media companies.
According to Brazilian officials, the letter also wrongly claims the US runs a trade deficit with Brazil, when official figures show the opposite.
Under WTO rules, consultations are the first step in resolving disputes, offering both sides 60 days to reach a settlement before a panel can be requested to adjudicate. Most disputes end at this stage without formal litigation.
A senior Brazilian trade official said the government ‘remains open to dialogue’ but stressed: “These tariffs are punitive in nature and based on political grievances, not economic realities.”
If no agreement is reached, Brazil can seek a formal WTO ruling, a process that could take years but might allow for retaliation if the US is found in breach.
Share