Lula Government Says New U.S. Tariff Threat Is Protectionist and Warns of Reciprocity

The Lula administration described as protectionist and unilateral a new U.S. threat to impose a 12.5% tariff on Brazilian products, announced early Wednesday (3) following a U.S. investigation into the alleged use of forced labor by 59 countries and the European Union.

In a statement, the Brazilian government mentioned the possibility of invoking the Reciprocity Law, unanimously approved by Congress, and said it expects the measure not to be implemented.

It was the second tariff threat in the same week. Earlier, the United States had already proposed a 25% tariff on Brazilian products, alleging unfair trade practices. The final decision rests with Donald Trump.

The Lula administration rejected the link between Brazil's competitiveness and labor-rights violations. "The International Labour Organization has recognized Brazil for decades as an international reference in combating forced labor," the statement said.

The episode also has a domestic political dimension: the new threats came days after Senator Flávio Bolsonaro (PL-RJ), a presidential hopeful, met with Trump in Washington. Lula's government attributes the investigation to a "provocation by the Bolsonaro family" and accuses the group of interfering in the country's internal affairs.

The latest Datafolha poll shows Lula with 47% voting intention in a runoff against Flávio Bolsonaro's 43%, a statistical tie within the margin of error.

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