Brazil to adopt Reciprocity Law against US
The US government’s decision, announced on Wednesday (Jul. 15), to impose 25 percent tariffs on products exported by Brazil triggered an immediate reaction from the Brazilian government. The Planalto presidential palace stated that Brazil’s Reciprocity Law will be invoked “immediately.”
The law, signed on April 11, 2025, had been originally motivated in part by decisions made by US President Donald Trump. At that time, Trump had escalated a trade war against several countries, including Brazil, and unveiled import surcharges.
It lists criteria for suspending trade concessions in response to unilateral actions, policies, or practices by another country that negatively impact Brazil’s economic competitiveness. Other countermeasures include introducing taxes or fees, eliminating exemptions or reductions in import tariffs, and restricting imports of goods or services.
These countermeasures should, to the extent possible, be applied in proportion to the economic harm caused to Brazil by another country or economic bloc.
The law also leaves room for dialogue so that retaliatory measures are not necessarily taken. Article 4 stipulates that diplomatic efforts must be made to reduce or eliminate the need for countermeasures.
Environment
The Reciprocity Law also covers countries that take unilateral measures based on environmental requirements that are more stringent than the environmental protection standards adopted in Brazil.
In such cases, Brazil must consider not only its domestic environmental regulations – such as the 2012 Forest Code – but also the targets set forth in the 2009 National Climate Policy and the commitments made under the 2015 Paris Agreement.
If a country imposes unilateral trade measures alleging noncompliance with environmental standards not covered by these legal frameworks – and which would be more costly for Brazil – the application of countermeasures is envisaged.
