Brasilia: U.S. proposal to slap 50 percent tariffs on imports from Brazil could trigger Brazil’s Reciprocity Law, President Luiz Inacio Lula da Silva said Thursday. Lula stated that if the 50 percent tariff takes effect on Aug. 1 as announced, his government will enforce the law while keeping negotiations open.

According to Namibia Press Agency, President Lula emphasized the readiness of his administration to engage in discussions to resolve the issue. However, he made it clear that in the absence of successful negotiations, Brazil would implement the Reciprocity Law, matching the U.S. tariffs with equivalent charges. “But if there is no negotiation, the Reciprocity Law will apply. If he charges us 50 percent, we will charge him 50 percent,” Lula told local television network RecordTV.

Brazil has experienced a trade deficit with the United States, which is its second-largest trade partner, for the past 15 years, Lula noted. This ongoing trade imbalance adds another layer of complexity to the potential enfor
cement of the Reciprocity Law, reflecting the strained economic relations between the two nations.