Brazil Seeks WTO Consultation Over New US Tariffs

Brazil has formally requested consultations with the World Trade Organization (WTO) over a new round of tariffs imposed by the United States, escalating trade tensions between the two countries amid an already heated political climate ahead of Brazil's presidential election.

According to Brazil's Ministry of Foreign Affairs, the request for consultations was submitted on July 27, marking the first formal step in the WTO's dispute settlement process. The Brazilian government argued that the US tariffs are "unjustified and incompatible" with international trade rules.

The latest trade measures introduced by the administration of US President Donald Trump include a 25% tariff on several Brazilian products over alleged unfair trade practices and an additional 12.5% tariff linked to accusations of forced labour in supply chains.

A WTO consultation request is the initial stage of a dispute settlement mechanism, allowing both parties to negotiate before the establishment of a formal dispute panel if no agreement is reached.

The trade disagreement comes against the backdrop of Brazil's upcoming presidential election, where incumbent President Luiz Inácio Lula da Silva is seeking re-election.

Lula has strongly criticised the US tariffs, describing them as an attempt to interfere in Brazil's domestic political process. He has accused right-wing presidential candidate Flávio Bolsonaro, son of former President Jair Bolsonaro, of encouraging Washington to maintain tariff pressure to gain an electoral advantage. Flávio Bolsonaro has denied the allegation.

The current dispute follows a similar episode in 2025, when Brazil also sought WTO consultations after the United States imposed 50% tariffs in response to the coup-related trial that resulted in former President Jair Bolsonaro's imprisonment. Most of those tariffs were later rolled back.

Adding to the diplomatic strain, Brazil recently denied visas to two US officials who had sought to meet with Brazilian election authorities ahead of the country's closely watched presidential election, according to a diplomatic source.

The latest developments underscore growing trade and diplomatic tensions between Brazil and the United States, with the WTO consultation likely to become a key test of international trade rules as both countries seek to defend their positions.