Brazil to withhold reciprocity against US while trade talks continue, Lula says

The ​Brazilian government does not ‌intend to ​use its reciprocity law against the United States over tariffs imposed by ‌Washington while negotiations continue, President Luiz Inacio Lula da Silva said on Monday.

Speaking via translator in an interview with CNN International's ‌Christiane Amanpour, Lula said Brazil could still reciprocate if ‌trade talks fail. "I think those tariffs were based on lies," Lula said. "While we're still around the negotiation table, I don't ⁠have to apply ​the reciprocity ⁠law."

The US government announced tariffs of 25% in July on ⁠some Brazilian goods, alleging unfair trade practices, as well as 12.5% tariffs ​on goods from dozens of nations, including Brazil, linked ⁠to allegations of lax enforcement of forced labor bans. Brazil then opened ⁠a ​process that could result in reciprocal measures against Washington in August.

Brazilian officials have called the higher levies unjustified ⁠and arbitrary. During an August call with US President Donald ⁠Trump, Lula ⁠said negotiations were the best way to resolve the dispute.