After President Luiz Inácio Lula da Silva stated that he will resort to the Economic Reciprocity Law to respond to the new tariff imposed by the United States on Brazilian products, the legislation began to occupy the center of public debate. Sanctioned in April 2025, the rule was approved by the National Congress amid the advance of the trade war initiated by the Donald Trump government and created a mechanism for Brazil to react to measures considered unilateral that affect its economy.
Contrary to the logic of “an eye for an eye, a tooth for a tooth”, the law does not determine automatic retaliation nor does it require Brazil to respond with the same intensity to barriers imposed by another country. The text establishes that any countermeasure must be proportional to the damage caused and seek to reduce impacts on companies, consumers and national production chains.
Legislation can be triggered whenever another country or economic bloc adopts actions that interfere with the legitimate and sovereign choices of the Brazilian State or impose trade barriers that negatively affect the country’s international competitiveness. It also applies when foreign measures violate or are incompatible with international trade agreements to which Brazil is a party.
Before adopting any measure, however, the law provides for a stage of diplomatic consultations and technical analyses. The objective is to prioritize negotiation and evaluate which instruments are most effective in protecting the national economy. Only if these negotiations do not produce results will the government be able to apply the countermeasures provided for in the legislation.
Another central point of the text is the principle of proportionality. The standard determines that the Brazilian response must be calibrated to face the effects of barriers imposed by the foreign country, but with the least possible impact on the national economy itself. In practice, this means that the government must choose measures capable of putting pressure on the country responsible for the restrictions without causing damage to the Brazilian productive sector.
Faced with the additional 25% tariff announced by the United States on Brazilian products, Lula stated that the government will use the instruments provided for in the Reciprocity Law and will also appeal to the World Trade Organization (WTO).
In a statement, Palácio do Planalto classified the American decision as unilateral, arbitrary and incompatible with the rules of international trade, arguing that the Brazilian reaction will seek to protect national industry, jobs and the country’s economic sovereignty.
What does the Law of Reciprocity allow?
When can the law be used?
Whenever another country or economic bloc adopts measures that harm Brazilian competitiveness, interfere in the State’s sovereign decisions or violate international trade agreements to which Brazil is a party.
Does it mean “an eye for an eye, a tooth for a tooth”?
No. The law does not determine automatic retaliation nor does it require Brazil to respond with the same intensity as the measure adopted by the other country. The text establishes that countermeasures must be proportional to the damage suffered and seek to minimize impacts on the Brazilian economy.
What measures can the government take?
The legislation authorizes:
- restrict the import of goods and services from the country that imposed the barrier;
- suspend commercial concessions;
- restrict investments;
- exceptionally suspend obligations related to intellectual property rights, such as patents and royalties.
Can the government implement these measures immediately?
No. The law requires the Executive to prioritize diplomatic consultations and negotiations before adopting any countermeasure. It also requires technical analyzes to evaluate which responses are more effective and cause less harm to Brazil.
Why was the law passed?
The Economic Reciprocity Law was approved by Congress and sanctioned by President Luiz Inácio Lula da Silva in April 2025, amid the escalation of the trade war initiated by the Donald Trump government. The proposal gained practically unanimous support in Parliament, as a way of guaranteeing Brazil a legal instrument to respond to trade barriers considered unilateral.
Why is she back in the debate now?
Because President Lula announced that he intends to use the mechanisms provided for by law to respond to the new 25% tariff imposed by the United States on Brazilian products. In addition to the Reciprocity Law, the government also informed that it will appeal to the World Trade Organization (WTO).
Source: www.brasildefato.com.br
