BRASILIA/SAO PAULO, July 23 (Reuters) – The Brazilian government on Thursday rejected the tariffs imposed by the United States on the South American nation and another 59 trading partners related to forced labor, calling the move “arbitrary” and “unjustified.”
“Lacking a legal basis under domestic law to support its protectionist trade policy, the U.S. Trade Representative chose to manipulate an issue of great importance to human rights and workers’ rights movement,” Brazil’s government said in a statement.
The country’s exports to the U.S. will be levied at 12.5% under the measure.
Brazil added it will immediately start procedures to trigger the response instruments under its “Reciprocity Law” and will take the matter to the World Trade Organization’s dispute settlement mechanism.
The tariffs on dozens of markets, imposed by the U.S. over allegations of lax enforcement of forced labor bans, will take effect on Friday.
Last week, the Trump administration imposed a separate 25% tariff on several Brazilian goods, attributing the levies to unfair trade practices, in a move that specifically targeted the South American country.
Brazilian President Luiz Inacio Lula da Silva said he was open to negotiations with the U.S., but noted that the country would seek other markets if unable to sell its products there.
(Reporting by Lisandra Paraguassu in Brasilia and Andre Romani in Sao Paulo, Editing by Natalia Siniawski and Daina Beth Solomon)
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