Brazil and US set virtual talks on tariff dispute

Brazil and the United States have put a date on the next stage of talks over a tariff dispute that is already affecting several Brazilian export sectors.

Márcio Elias Rosa, Brazil’s Minister of Development, Industry, Trade, and Services, is scheduled to meet virtually with US Trade Representative Jamieson Greer on Monday, August 31. The ministry confirmed the meeting to Agência Brasil.

For companies trading across the two markets, the meeting is an important signal that technical negotiations are restarting after weeks of tension. The dispute involves tariffs imposed by Washington on Brazilian goods and has already moved into the formal dispute process at the World Trade Organization, the Geneva-based body that oversees global trade rules.

A political opening after a leaders’ call

The new round of dialogue follows a phone conversation between Brazilian President Luiz Inácio Lula da Silva and US President Donald Trump on Friday, August 21. According to Brazil’s presidential palace, known as the Planalto, the call lasted around one hour and 20 minutes and was cordial.

Planalto said the two presidents agreed to reopen a channel of communication between Brasília and Washington. During the conversation, Lula asked for trade negotiations to resume and argued that the reasons cited by the US government for the tariffs had no basis.

The ministerial meeting now shifts the discussion from presidential diplomacy to trade policy. On the Brazilian side, the ministry involved is commonly known by its Portuguese acronym, MDIC. It is responsible for industrial policy, foreign trade, services, and business development. On the US side, the USTR leads trade negotiations and enforcement for the White House.

Tariffs hit manufacturers and agribusiness linked sectors

The measures at the centre of the dispute began in July, when the USTR applied a 25 percent surcharge to a range of Brazilian products after a review process that lasted nearly a year.

The affected exporters include companies selling iron and steel, apparel, footwear, sugar, ethanol, pharmaceuticals, agricultural machinery, non-aviation electrical machinery, and other manufactured goods. These are sectors with different exposure profiles, from commodity-linked industrial inputs to consumer goods and higher value equipment.

Washington said the tariffs were justified because certain Brazilian practices were unreasonable and placed burdens or restrictions on trade for US farmers, workers, innovators, and exporters.

A further 12.5 percent surcharge was later applied to additional Brazilian products. In that case, the US argument was that Brazil lacked effective mechanisms to prevent imports of goods produced with forced labour.

According to a survey by Brazil’s Ministry of Development, Industry, Trade, and Services, the new tariffs have been in force since the end of last month and cover roughly USD 6.6 billion in Brazilian exports to the US market.

For investors, the immediate concern is not only the tariff cost itself. It is also the uncertainty around contract pricing, supply chain allocation, and the competitiveness of Brazilian production destined for the United States. Exporters in affected sectors may need to reassess margins, delivery schedules, and customer negotiations while the dispute remains unresolved.

WTO track continues alongside bilateral talks

Brazil has already sought consultations through the World Trade Organization’s dispute settlement system. Consultations are the first formal stage in many WTO disputes, giving governments an opportunity to negotiate before litigation advances further.

Brasília argues that the US tariffs are inconsistent with WTO rules. The United States has accepted Brazil’s request to hold consultations under the WTO framework, which means the legal channel is moving in parallel with the political and ministerial dialogue.

Brazil has also stressed a broader point about the bilateral trade relationship, namely that the United States runs a trade surplus with Brazil. In other words, the US sells more to Brazil than it buys from Brazil. That argument has become part of Brasília’s case that punitive trade measures are misplaced.

The Brazilian government has said it will keep working to reduce the damage caused by the tariffs to the national economy and to Brazilian incomes. It made that point in the statement announcing the opening of an economic reciprocity process, a domestic policy response aimed at assessing possible countermeasures and negotiating options.

For international companies, the August 31 meeting will be worth watching closely. A constructive outcome could help stabilise expectations for exporters, importers, distributors, and manufacturers with Brazil-US exposure. A prolonged dispute, by contrast, could push firms to review sourcing decisions, customs planning, and market diversification strategies.

If your company is assessing how trade policy, tariffs, or Brazil-US commercial relations may affect investment and operations in Brazil, connect with Brazil Business Club for insight and local business support.