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

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 US government, at the Planalto Palace in Brasilia, Brazil, Jul 22, 2026. REUTERS

The Brazilian government on Thursday rejected the tariffs imposed by the United States on the South American nation and another 59 trading partners related to forced labor, calling the move "arbitrary" and "unjustified."

"Lacking a legal basis under domestic law to support its protectionist trade policy, the US Trade Representative chose to manipulate an issue of great importance to human rights and workers' rights movement," Brazil's government said in a statement.

The country's exports to the US will be levied at 12.5percent under the measure.

Brazil added it will immediately start procedures to trigger the response instruments under its "Reciprocity Law" and will take the matter to the World Trade Organization's dispute settlement mechanism.

The tariffs on dozens of markets, imposed by the US over allegations of lax enforcement of forced labor bans, will take effect on Friday.

Last week, the Trump administration imposed a separate 25 percent tariff on several Brazilian goods, attributing the levies to unfair trade practices, in a move that specifically targeted the South American country.

Brazilian President Luiz Inacio Lula da Silva said he was open to negotiations with the US, but noted that the country would seek other markets if unable to sell its products there.