Brazil's President Luiz Inacio Lula da Silva speaks during a ceremony to sign into law a bill establishing a line of credit for companies affected by new tariffs imposed by the U.S. government, at the Planalto Palace in Brasilia, Brazil, July 22, 2026. REUTERS/Adriano Machado
Brazil's President Luiz Inacio Lula da Silva speaks during a ceremony to sign into law a bill establishing a line of credit for companies affected by new tariffs imposed by the U.S. government, at the Planalto Palace in Brasilia, Brazil, July 22, 2026. REUTERS/Adriano Machado
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Business & Economy

Brazil says US tariffs related to forced labor are 'arbitrary' and 'unjustified'

BRASILIA/SAO PAULO, July 23 (Reuters) – The Brazilian government rejected on Thursday the tariffs imposed by the United States on the South American nation and other 59 trading partners, calling the move “completely arbitrary” and “unjustified”, according to a statement.

“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,” said Brazil, whose exports to U.S. will be levied at 12.5% under the measure.

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Brazil added it will immediately start procedures to trigger the response instruments under its “Reciprocity Law”, and will take the matter before the World Trade Organization’s dispute settlement mechanism.

(Reporting by Lisandra Paraguassu in Brasilia and Andre Romani in Sao Paulo, Editing by Natalia Siniawski)

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By Reuters | Reuters | © Copyright Thomson Reuters 2026.

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