Brazil opens formal WTO challenge against U.S. tariffs

Finance minister calls duties ‘absurd’ ahead of G20 meeting

BRASILIA, Brazil — Brazil on Monday formally requested consultations at the World Trade Organization over new U.S. tariffs on Brazilian exports, arguing the measures violate international trade rules, the Foreign Ministry said.

The request marks the first formal step in the WTO dispute settlement process, according to the ministry. Brazil is challenging additional U.S. tariffs of 25% and 12.5% imposed after separate trade investigations involving Brazilian products.

The duties affect about $6.6 billion in exports to the United States, including machinery, wood products, footwear, furniture and apparel, according to Brazil’s Ministry of Development, Industry, Trade and Services. The combined 37.5% surcharge applies to 16.5% of Brazilian exports to the United States.

Brazil argues the measures violate obligations under the General Agreement on Tariffs and Trade, known as GATT, according to state-run Agência Brasil.

The U.S. net exports of goods and services stood at -$819.96 billion as of the latest data.

Despite filing the complaint, Brazilian officials acknowledged the move is largely symbolic, according to CNN Brasil. The WTO’s dispute settlement system remains weakened because its appellate body has been unable to operate after the United States blocked the appointment of new judges, the outlet reported. Without a functioning appeals system, countries can adopt protectionist trade measures with limited enforcement through the WTO.

Brazilian officials said the challenge is intended to reinforce the country’s position against the tariffs, which also affect other U.S. trading partners.

Brazilian Finance Minister Dario Durigan called the tariffs “absurd,” but said negotiations with the U.S. government will continue. He is scheduled to meet with Treasury Secretary Scott Bessent during next month’s G20 meetings.

“I will present all of our arguments with the respect they deserve, as always, but I believe that after the [November] presidential election, this issue will be resolved one way or another,” Durigan told Rádio Jurnal.