Brazil Rebukes U.S. Trade Probe, Wins WTO Talks on 50% Tariff Dispute

Brazil has delivered a formal, 70-page rebuttal to the Section 301 investigation the U.S. Trade Representative opened in July, dismissing the probe—which targets policies such as the PIX digital-payments system—as an illegitimate and unilateral use of U.S. trade law. Brasília said its measures are non-discriminatory and urged Washington to settle differences through dialogue rather than punitive action. Separately, Brazil has asked the World Trade Organization for consultations over the 50% tariff President Donald Trump imposed on most Brazilian imports earlier this month. The United States has agreed to participate while simultaneously invoking the WTO’s national-security exception, a move that could complicate dispute-settlement proceedings. Brazilian officials say the levy violates multilateral rules and threatens bilateral commerce. President Luiz Inácio Lula da Silva is also rallying international support. In a 20 August phone call, he and French President Emmanuel Macron condemned the U.S. tariffs and pledged to conclude long-stalled talks on a Mercosur-European Union trade accord by year-end, with Paris insisting any deal safeguard European farmers. The outreach underscores Brasília’s strategy of countering U.S. pressure by strengthening both multilateral and bilateral trade ties.