Brazil to unveil measures against US tariff on August 13th - CNN Brasil

Brazil to unveil measures against US tariff on August 13th - CNN Brasil

Brazil has announced plans to unveil measures against U.S. tariffs on August 13th, according to CNN Brasil. The move comes amidst escalating tensions between the two countries, which have been exacerbated by the U.S. administration's imposition of 50% duties on several Brazilian goods. The tariffs, which took effect on August 7th, are linked to Brazil’s prosecution of former far-right President Jair Bolsonaro, a close ally of U.S. President Donald Trump.

Brazil has initiated a formal consultation process with the World Trade Organization (WTO) in response to the tariffs, citing a violation of key WTO commitments, particularly the "most favored nation" principle. The tariffs are estimated to affect 35.9% of Brazil's exports to the U.S., accounting for approximately 4% of its total global exports. Brazil's Finance Minister, Fernando Haddad, lamented the cancellation of a scheduled meeting with U.S. Treasury Secretary Scott Bessent, expressing frustration that Brazil was not able to negotiate tariffs directly.

Haddad also highlighted that Brazil will need to explore other markets more aggressively, particularly Southeast Asia, and called for urgent progress on a trade deal between South America's Mercosur bloc and the European Union. The minister emphasized that the government will soon issue an executive order to address the impact of higher U.S. tariffs, which will include structural reforms to Brazil's export guarantee mechanisms through the Export Guarantee Fund (FGE).

The tariffs have inadvertently boosted Lula's domestic approval ratings as Brazilians rally against what is seen as an "unjust attack" on their country. The U.S. administration, through an executive order signed by President Trump, justified the tariffs by declaring a national emergency, citing Brazil’s "policies, practices, and actions" as threats to U.S. national security, foreign policy, and economy. The order specifically accuses the Brazilian government of "politically persecuting" Bolsonaro and infringing on the free expression rights of U.S. persons.

The U.S. State Department has also condemned Bolsonaro’s house arrest, accusing Justice Alexandre de Moraes of Brazil’s Supreme Court of using the country’s institutions to silence opposition and threaten democracy. Brazil's decision to pursue WTO consultations is a standard first step in trade disputes, though the process can be lengthy and its outcome uncertain. Lula has also called for a reform of the WTO to better mediate such conflicts.

Brazil's tariff response comes as the global gold market remains on edge due to potential changes in U.S. gold bar tariff rules announced by the White House. Gold prices experienced a sharp pullback to $3,463 from a record high of $3,530 following the announcement, highlighting the market's sensitivity to regulatory changes. The Swiss Precious Metals Association has warned that tariffs on 1kg/100oz gold bars could disrupt global physical gold flows, given Switzerland's refining dominance.

The implications of the U.S. tariffs extend beyond Brazil and the gold market. If the tariff rules remain unchanged, global flows of gold may shift, and the U.S. could lose its competitive edge in the global gold trade. Higher import costs would affect not just institutional hedgers but also retail investors, as tariffs ripple through jewelry, coinage, and bullion markets.

For now, the White House is expected to issue an executive order to clarify the situation, while the market remains on edge. Gold has risen 31% year-to-date amid trade and geopolitical tensions, and while tariffs could push prices higher on paper, they also threaten to strain the physical supply chains that support the global gold market.

[1] https://www.wto.org/english/news_e/news25_e/ds640rfc_11aug25_e.htm
[2] https://www.ainvest.com/news/gold-dips-2-white-house-clarifies-gold-tariff-rules-2508/
[3] https://www.reuters.com/world/americas/brazil-us-meeting-canceled-amid-tariff-dispute-says-finance-minister-2025-08-11/
[4] https://nigeriansketch.com/brazil-rejects-tariff-talks-with-trump-citing-humiliation-and-wto-action/