Brazil will challenge the 50% tariff that Washington imposed on its exports earlier this month by filing lawsuits in U.S. courts rather than relying on political lobbying, Finance Minister Fernando Haddad said on Wednesday. The government has retained Washington-based Arnold & Porter Kaye Scholer LLP under a contract worth up to $3.5 million over four years to lead the litigation, according to Brazil’s attorney-general’s office. The tariff, announced by President Donald Trump on 9 July and applied from 6 August, covers most Brazilian products and has already upended commodity trade. Analysts expect the measure to divert U.S. purchases of Brazilian beef to other suppliers and to redirect global meat flows. In response, Brazil is seeking to widen market access in Mexico, where authorities will inspect 14 additional Brazilian packing plants next month, including facilities owned by JBS, Marfrig and Minerva. Brazil is also taking defensive trade steps at home. The government’s Gecex/Camex panel this week approved temporary antidumping duties on polyethylene resins imported from the United States and Canada for up to six months and imposed definitive duties on certain Chinese steel sheets. Separately, Haddad reiterated that “the U.S. cannot prevent countries from trading in local currencies,” underscoring Brasília’s broader push to diversify commercial ties and reduce exposure to the dollar.
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