Lula enacts Reciprocity Law and prepares Brazil’s response to Trump’s tariffs

247 - President Luiz Inácio Lula da Silva signed into law, without vetoes, the Economic Reciprocity Law this Friday (11), enabling the Brazilian government to take action against tariffs imposed by other countries. The measure represents a direct response to the tariff hike announced by the United States, which will hit Brazilian exports with a base rate of 10%.

On April 2, the National Congress approved the bill, which allows the Executive Branch to adopt countermeasures against countries or economic blocs that implement restrictions on Brazilian exports — whether in the form of commercial tariffs or product-origin limitations (such as goods from deforested areas). The bill was proposed by the Senate and aims to protect the national economy from potential sanctions by the US and the European Union.

Although the legislation offers tools for a potential "tariff war", it also emphasizes the pursuit of diplomatic solutions, in line with the approach adopted by the Lula administration.

According to the law, countermeasures should, if possible, be proportional to the economic impact caused by foreign actions, with attention to minimizing the domestic effects of such measures and avoiding disproportionate burdens and administrative costs.

Lula stated that trade wars have no winners and reaffirmed that Brazil will not remain silent in the face of unilateral tariff aggression from US President Donald Trump.