Brazil Seeks WTO Review as Trump Imposes 50% Tariff on Brazilian Goods

Brazilian President Luiz Inácio Lula da Silva said his government will deploy “all available measures,” including a case at the World Trade Organization, to counter a new 50% tariff the United States is set to apply to Brazilian products starting Wednesday. The surcharge, which adds 40 percentage points to the 10% duty imposed in April, spares nearly 700 items such as aircraft parts, orange juice and energy products. Even with those exemptions, Brasília estimates that about 36% of shipments to the United States—roughly 4% of Brazil’s overall exports—will face the full levy. Key agricultural exports including coffee, beef, cocoa and fruit are among the hardest-hit goods. To cushion the blow, the administration is finalizing a relief package that will extend corporate debt maturities, offer cheaper working-capital loans through state development bank BNDES and provide temporary wage subsidies. Under the draft plan, employees of affected companies could receive two payments of one minimum wage (R$1,518) each, while the government also considers purchasing surplus food stocks and expanding export-insurance programs. Brazil’s trade office is preparing to request WTO consultations, a step Vice President Geraldo Alckmin said could be filed within days. Finance Minister Fernando Haddad added that the dispute is unlikely to derail fiscal targets but acknowledged the support measures could raise public-debt needs. Economists expect limited macroeconomic fallout because the United States accounts for just 12% of Brazilian exports and alternative markets, especially China, remain strong.