Brazil Urges WTO to Counter Trump Tariffs

Brazil Seeks WTO Relief from Trump’s 50‑Percent Tariff

Brazil has filed a formal dispute with the World Trade Organization seeking a review of the U.S. trade sanctions imposed by President Donald Trump on more than a third of Latin American exports.

Trump’s 50‑Percent Tariff in Force

Tariff details:

• Duty raised from 10 % to 50 % on key commodities such as coffee, beef, and sugar.
• Nearly 700 other U.S.‑bound goods are exempt, including civilian aircraft, orange juice, Brazil nuts, and certain iron, steel, and aluminum products.
• Rate applies to about 36 % of Brazil’s exports to the U.S., amounting to roughly $14.5 billion last year.

WTO Consultation Process

The Brazilian government has requested consultations with the U.S. mission to the WTO, marking the first formal step in the dispute settlement procedure.

Political Context of Trump’s Tariff

• Trump’s tariff is among the highest faced by U.S. trading partners and is framed in overt political terms.
• The policy follows an executive order criticizing alleged criminal charges against former President Jair Bolsonaro, who faces trial for alleged coup plotting.
• The U.S. administration also accuses Brazil’s Lula government of threatening U.S. economy, national security, and foreign policy.

Brazil’s Trade Surplus and U.S. Tensions

• Brazil’s trade surplus with the United States was $284 million last year.
• U.S. tensions are unlikely to ease soon, with Bolsonaro under house arrest pending trial outcomes.
• Supreme Court Justice Alexandre de Moraes, who presides over Bolsonaro’s trial, has faced financial sanctions amid accusations of an unlawful “witch hunt.”

International Tariff Wave

Trump’s tariff hike came a day before a separate wave of higher duties on dozens of economies, from the European Union to Taiwan. Pantheon Macroeconomics estimates the increases would boost the average effective tariff rate for U.S. imports to nearly 20 %, a level not seen since the 1930s.