Brazilian President Luiz Inácio Lula da Silva activated the country's economic reciprocity mechanism in response to tariffs imposed by the United States. He presented the step as a demonstration that Brazil must be respected, while saying he was prepared to defend the country's position in any forum.
President Donald Trump placed tariffs on hundreds of Brazilian exports in July, with duties reaching 37.5 percent on some products. The US administration has accused Brazil of unfair trade practices, an allegation Lula denies and describes as politically motivated ahead of Brazil's October election.
The trade dispute is closely tied to that contest. Lula is seeking reelection against Senator Flávio Bolsonaro, a Trump ally who met US officials, including Trump, in Washington weeks before the higher tariffs were proposed. Lula warned that foreign governments attempting to interfere in the election would lose.
Brazil's Foreign Ministry requested diplomatic consultations with Washington, framing the move as evidence that Lula continues to favor dialogue and negotiation. Opening the reciprocity process does not automatically produce counter-tariffs, and the president said he did not want a fight with the United States while accusing its government of spreading false claims.
The tariff confrontation is unfolding beside a visa dispute. The US State Department revoked the Brazilian ambassador's visa after Brazil denied visas to two American diplomats who wanted to visit before the election. Washington did not expel the ambassador, leaving the diplomatic relationship under pressure but short of a full rupture.
A separate disagreement concerns Trump's nominee for ambassador in Brasília. US officials accuse Brazil of delaying approval, while Brazilian officials say Washington should have obtained government consent before sending the nomination to Congress, as diplomatic protocol requires. American officials describe the limited visa response as an attempt to give Lula time to step back.
Those officials have also indicated that Washington could escalate quickly, including by declaring the Brazilian ambassador persona non grata and expelling her. Brazil's reciprocity mechanism therefore operates as both legal preparation and political signaling: Lula is showing resolve without yet ordering retaliation, while the United States keeps a stronger diplomatic response available if the confrontation deepens.
