Brazil challenges U.S. tariffs at WTO, seeks negotiated solution

According to the Lula administration, the tariffs “flagrantly violate core commitments” the U.S. has made under WTO rules, including the most-favored-nation (MFN) principle and tariff ceilings negotiated within the organization.

The 50% tariff was imposed under U.S. legislation, including the International Emergency Economic Powers Act and Section 301 of the 1974 Trade Act.

The WTO consultations, to be held in Geneva, are the first formal step in the organization’s dispute settlement process and are intended to promote a “negotiated solution” before a potential panel is established. A date and location for the consultations will be agreed upon by both parties in the coming weeks.

“The Brazilian government reaffirms its openness to negotiation and hopes the consultations will contribute to a resolution of the matter,” the ministries said.

Despite the formal request, Lula administration officials privately admit they do not expect a concrete result from the WTO proceedings. However, they view the move as an important geopolitical gesture. According to Valor sources, the main objective is to defend multilateralism and underscore the need for a rule-based international trade system in the face of U.S. unilateralism.

The possibility of bringing the issue to the WTO has been under consideration since the beginning of Trump’s second term, when he launched a new round of global tariff hikes. From the outset, Brazilian officials saw it as unlikely that the U.S. would comply with any WTO ruling and thus treated the move as more symbolic than substantive.

Brazil has also raised concerns about U.S. influence within the WTO, citing the presence of several senior officials linked to the U.S. government—reducing confidence in a favorable outcome.

Nonetheless, the Lula administration reached a consensus to proceed with the WTO filing after Mr. Trump’s July announcement of the 50% tariff, which took effect Wednesday.

At the WTO General Council meeting in Geneva in late July, Brazil reiterated its commitment to defending the multilateral trading system and condemned the use of arbitrary tariffs that violate core WTO principles and threaten the global economy.

Brazil also called for renewed efforts to reform the multilateral trading system and restore the WTO’s role as a venue for dispute resolution and the defense of its members’ legitimate interests through dialogue and negotiation. Following Brazil’s statement, 40 countries—including the EU’s 27 member states—expressed support for the rules-based global trade framework and backed the call for structural reform of the organization.