Brazil Takes U.S. Tariffs to WTO, Escalating Trade Dispute

Brazil has formally challenged a new round of U.S. import tariffs at the World Trade Organization, escalating tensions between the two largest economies in the Americas. Brasília filed a request for consultations with the U.S. delegation in Geneva on 6 August after Washington imposed a 50 percent surcharge on a wide range of Brazilian goods. The move is the first procedural step in the WTO’s dispute-settlement system; if talks fail to produce a compromise within 60 days, Brazil can ask the trade body to establish an arbitration panel. In its filing, Brazil argues the surcharges introduced by the administration of former President Donald Trump breach core WTO rules, including the most-favoured-nation obligation and the tariff ceilings the United States previously committed to. The WTO secretariat on 11 August confirmed receipt of the complaint, formally opening the case. Even if a panel is convened, the outcome could take years because the WTO’s Appellate Body remains inactive—a paralysis triggered by successive U.S. refusals to appoint new judges. Trade lawyers in Brasília say Brazil could ultimately seek an alternative arbitration mechanism created by a group of WTO members in 2020, but any ruling would not be binding on Washington without its consent.