The Government of Brazil formally submitted a request for consultations with the World Trade Organization (WTO) in response to tariff measures imposed by the United States, which include taxes of up to 50%on a wide range of Brazilian products. According to the National Confederation of Industry (CNI), more than half of Brazil's exports to the US market will be affected by these surcharges.
In a statement released today (August 06.08.2025, XNUMX), the Brazilian Ministry of Foreign Affairs described these measures as a "flagrant violation" of fundamental commitments made by the United States within the WTO, such as the most-favored-nation principle and multilaterally negotiated tariff caps. At the same time, it reiterated the Brazilian government's willingness to advance diplomatic negotiations and expressed its expectation that the consultations "will contribute to a mutually satisfactory solution."
Bilateral consultations are part of the WTO's dispute settlement system, which establishes a prerequisite for the formation of an arbitration panel. In this process, the United States must respond within ten days and participate in the consultations within a maximum of 30 days. If a solution is not reached, Brazil could request the establishment of a panel with a view to possible trade compensation.
Tariff measures
The tariffs imposed by Washington were formalized through two executive orders: the No. 14257 of April 2, 2025 and No. 14345 of July 30, 2025. These provisions are based on instruments such as the International Emergency Economic Powers Act (IEEPA) and Section 301 of the United States Trade Act.
The diplomatic context between the two countries has become even more tense after the US president accused Brazilian officials - including members of the judiciary - of having adopted measures that, in his opinion, "interfere with the US economy, violate the freedom of expression rights of US citizens, and undermine the rule of law in Brazil."These arguments served as the basis for justifying the executive orders that triggered the new tariffs.
Industry reaction
In the face of these announcements, the National Confederation of Industry (CNI) conducted an analysis based on lists of affected and exempt products. According to its data, 41,4% of Brazilian exports to the United States—covering 7.691 products from multiple sectors—are now subject to a combined 50% tariff. The most impacted sectors are: apparel and accessories (14,6%), machinery and equipment (11,2%), textile products (10,4%), food (9,0%), chemical products (8,7%), and leather and footwear (5,7%). Meanwhile, exports of steel, aluminum, and copper—which already face surcharges of 25% and 50% under Section 232 of the Trade Expansion Act—represent 9,3% of the total and are also subject to the new 50% tariff. Overall, These sectors represent 50,7% of Brazilian exports to the US market.
"The magnitude of the problem we face is enormous, and we will need a breakthrough in negotiations to overcome these barriers. This task requires the participation of governments and productive sectors. The United States is the industry's main trading partner; we need to find solutions.", he claimed Ricardo Alban, president of the CNI, in the official statement.
With this action, Brazil joins three other countries—China, Canada, and India—that have also filed requests for consultations with the WTO over additional tariffs imposed by the United States on a variety of products.
WTO Mechanism
As the WTO itself explains regarding the dispute settlement mechanism: "No one likes countries to argue with each other, but if trade disputes are going to arise, it's better to resolve them according to internationally agreed rules." In this sense, resorting to this mechanism reflects countries' confidence in the multilateral system to resolve their disputes in an orderly and fair manner.
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