Brazil Rejects U.S. Tariffs Over Forced Labor Claim, Threatens WTO Action

According to Lianhe Zaobao citing Reuters, Brazil's government on Thursday, July 23, rejected a new U.S. tariff increase on 60 trade partners, including Brazil, over alleged forced labor, calling Washington's decision arbitrary and lacking justification. Brazil said the U.S. Trade Representative was using a human rights and labor rights issue without a domestic legal basis to support protectionist policy, and said it would immediately activate retaliation tools under Brazil's Reciprocity Law and take the dispute to the World Trade Organization (WTO). Under the new measure, Brazilian exports to the U.S. will face a 12.5% tariff. Last week, the Trump administration separately imposed a 25% tariff on several Brazilian goods, citing unfair trade practices. Brazil President Luiz Inacio Lula da Silva said he was open to talks with the U.S., but added that if Brazilian products could not be sold in the American market, Brazil would seek other markets. The Office of the U.S. Trade Representative said on July 23 that the tariffs will be imposed under Section 301 of the 1974 Trade Act at 10% or 12.5% on 60 countries and regions, effective at 12:01 a.m. New York time on July 24, with cargo already loaded before then exempt.