Brazil is setting itself up to make a formal complaint at the World Trade Organization (WTO) against the newly imposed US tariffs, although it is still willing to seek a diplomatic solution, according to government officials.
It comes after a move by US President Donald Trump to impose a 50% tariff on some Brazilian exports — coffee, beef, and petrochemical goods — scheduled to take effect on Wednesday.
The new tariffs will affect close to 35% of Brazilian exports to the US. It is, however, left out major categories like energy-related products and certain minerals.
On Monday, Brazil's Chamber of Foreign Trade authorized the initiation of formal WTO consultations — the first step in pursuing a case under the organization's settlement process.
The choice has now been left with President Luiz Inácio Lula da Silva, who will decide the right time and method of filing the complaint to the global trade regulator.
The Brazilian government is working hard to cushion the impact of the new trade restrictions, Vice President Geraldo Alckmin said. He said there were already meetings with leaders in the agribusiness industry to come up with coordinated reactions. There are also talks with other concerned sectors, Xinhua reports.
Finance Minister Fernando Haddad reiterated that although Brazil is willing to engage in ongoing talks, it will not accept unfair treatment in global trade.
"We won't negotiate with the US as a satellite or colony — we're a sovereign state," Haddad told BandNews in an interview.
He condemned the US move as "unreasonable" and "excessive." Nevertheless, he was hopeful of furthering bilateral cooperation in mutually complementary domains like critical minerals, data infrastructure, and emerging technologies.
"Brazil possesses precious deposits of rare earths and critical minerals — something America does not have," he pointed out. "We're open to cooperating on effective battery manufacturing and other key technologies."
In order to insulate the local economy from the negative impact of the tariffs, Haddad announced that the government is in the process of finalizing a relief package for affected businesses, including, for instance, increased credit lines. Though he realized there could be budgetary strains, he assured that the relief program would be operated within the existing fiscal structure.
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