Brazil tells WTO U.S. tariffs are discriminatory

Brazil has described the new U.S. surcharges on its exports as “unilateral” and “discriminatory” in a request for consultations filed with the World Trade Organization.

In the document, the Brazilian government argues that the tariffs breach commitments made by the United States at the WTO and disregard the rules of the multilateral dispute settlement system.

Brazil formally challenged the 25% and 12.5% tariffs at the WTO on Monday (27), but the filing became public only on Thursday, when the consultation request was posted on the organization’s website. The measures were imposed under Section 301 of the U.S. Trade Act of 1974.

The tariffs stem from two investigations conducted by the Office of the U.S. Trade Representative (USTR): one into alleged unfair trade practices and another related to forced labor.

Brazil argues that Washington acted inconsistently with the WTO’s Dispute Settlement Understanding by seeking redress for alleged violations through unilateral tariff measures rather than using the organization’s dispute settlement procedures.

Equal treatment

The government also says the United States violated the WTO’s most-favored-nation principle by failing to grant Brazil the same tariff treatment offered to other members of the organization.

Brazil is now awaiting a formal response from Washington so the two sides can agree on a “mutually convenient date” to begin consultations.

The consultation stage is intended to allow the parties to seek a diplomatic settlement before a panel is established to examine the dispute. The two countries have up to 60 days to try to reach an agreement.

Political signal

As Valor previously reported, the Lula administration believes the case is unlikely to advance because the WTO’s Appellate Body remains paralyzed by a lack of judges.

Even so, government officials view the filing as a political signal to the U.S. administration.

The document also reviews the escalation of U.S. tariffs since February 2025 against a range of trading partners, including Brazil.

Source: Valor International

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