According to local media reports, Brazil has formally requested consultations with the World Trade Organization (WTO) after the US government imposed sweeping tariffs on Brazilian exports. These measures, which include duties of up to 50 percent, now impact more than half of Brazil’s shipments to the US market. The dispute could escalate if no resolution is reached in upcoming consultations, potentially affecting billions in bilateral trade.
According to the National Confederation of Industry (CNI), the new tariffs affect 50.7 percent of all Brazilian exports to the US. This includes critical sectors such as textiles, machinery, chemicals, and metals, making the US trade relationship one of Brazil’s most economically sensitive fronts.
“Flagrant violation of WTO rules”
On August 6, 2025, Brazil's Ministry of Foreign Affairs labeled the US tariffs as a “flagrant violation” of WTO rules - particularly those regarding most-favored-nation (MFN) treatment and tariff ceilings. The ministry expressed its hope that consultations will lead to a "mutually satisfactory solution," but also signaled its readiness to escalate the dispute within the WTO’s framework.
Under WTO rules, the United States is obligated to respond within 10 days and begin consultations within 30 days. Should no resolution be reached during this phase, Brazil may proceed to request a formal arbitration panel, potentially opening the door to trade retaliation or compensation.
The CNI conducted a comprehensive analysis of the affected product lists and issued the following breakdown:
| Sector | % of total Brazilian exports to US affected |
| Apparel & Accessories | 14.6% |
| Machinery & Equipment | 11.2% |
| Textiles | 10.4% |
| Food | 9.0% |
| Chemicals | 8.7% |
| Leather & Footwear | 5.7% |
| Metals (Steel, Aluminum, Copper) | 9.3% |
Overall, these sectors comprise 50.7 percent of Brazilian exports to the US, signifying a substantial disruption to trade flows.
“The magnitude of the problem we face is enormous,” said Ricardo Alban, president of the CNI, adding, “The United States is the industry's main trading partner; we need to find solutions. This task requires the involvement of both governments and the private sector.”