Brazil Considers Retaliation Measures Amid Trump Standoff

Brazil's government is studying potential responses to US President Donald Trump's sanctions, including limiting dividend payments by US companies in Brazil, ending US drug patent licensing, and taxing big tech firms. Finance Minister Fernando Haddad denied considering dividend limits as retaliation. The government plans to continue diplomatic negotiations with the US, with any retaliatory measures possibly adopted after August 2.

Title: Brazil Considers Retaliatory Measures Against U.S. Sanctions

Brazil's government is weighing potential responses to U.S. President Donald Trump's recent sanctions, which include visa restrictions on Brazilian Supreme Court officials involved in the trial of former President Jair Bolsonaro. The measures, announced on July 19, have sparked a diplomatic standoff between the two nations. Finance Minister Fernando Haddad has denied that the Brazilian government is considering limiting dividend payments by U.S. companies operating in Brazil as a retaliatory measure, according to Reuters [1]. Instead, the government is exploring alternative responses, including ending U.S. drug patent licensing and taxing big tech firms.

The escalation of tensions comes amidst Bolsonaro's trial, where he is accused of plotting a coup to overturn the 2022 election results. Trump has criticized the proceedings against Bolsonaro, labeling it a "witch hunt" and calling for the charges to be dropped. In response, Brazil's President Luiz Inacio Lula da Silva condemned the U.S. visa bans as "arbitrary" and "baseless," stating that foreign interference in the judiciary is "unacceptable" [1].

The Brazilian government is also considering ending the licensing of U.S. drug patents and levying taxes on big tech firms, according to O Estado de S. Paulo newspaper [2]. The government has not made a decision on these measures, which would require the approval of President Lula. The government plans to continue diplomatic negotiations with the Trump administration, with any retaliatory measures potentially being adopted after August 2. The U.S. government has announced a 50% tariff on Brazilian goods starting August 1, which Trump has tied to the charges against Bolsonaro [3].

The tariffs imposed by Trump on Brazil are not about redressing any sort of trade dispute but are aimed at accomplishing unrelated policy goals, according to EJIL Talk [3]. The measures are seen as a breach of the rule of non-intervention, configuring a specific type of intervention: "coercion-as-extortion."

References

[1] Reuters. "Tensions rise as Lula blasts U.S. over visa sanctions tied to Bolsonaro trial." July 19, 2025. https://www.reuters.com/world/americas/tensions-rise-lula-blasts-us-over-visa-sanctions-tied-bolsonaro-trial-2025-07-19/

[2] Bloomberg. "Brazil may target US dividends, tech firms amid Trump standoff." July 19, 2025. https://www.bloomberg.com/news/articles/2025-07-19/brazil-may-target-us-dividends-tech-firms-amid-trump-standoff

[3] EJIL Talk. "Trump's tariffs against Brazil: a breach of the non-intervention rule." July 9, 2025. https://www.ejiltalk.org/trumps-tarifaco-against-brazil-a-breach-of-the-non-intervention-rule/comment-page-1/