Kathmandu: Trade tensions have flared between the United States and Brazil after US President Donald Trump announced a 50 percent tariff on several key Brazilian exports, prompting strong reactions from the Brazilian government, which plans to pursue a resolution through the World Trade Organization (WTO).

The new tariffs, set to take effect next Wednesday, will impact major Brazilian export products including coffee, meat, and petrochemicals, which together account for approximately 35 percent of Brazil’s exports to the US. However, energy materials and select minerals have been exempted from the new duties.

In response, Brazil’s Foreign Trade Chamber has approved a proposal to initiate preliminary consultations with the WTO—a step that will be finalized by President Luiz Inacio Lula da Silva.

Vice President Geraldo Alckmin stated that the government is currently in discussions with agricultural stakeholders to assess and minimize the economic fallout. Meanwhile, Finance Minister Fernando Haddad criticized the tariffs as “excessive and unreasonable,” adding that Brazil remains open to constructive engagement.

To cushion the impact on affected sectors, the Brazilian government is also preparing to roll out a special support package, which may include loan assistance and other relief measures for industries hit by the US decision.

The move by the US is expected to have significant economic and diplomatic implications, as Brazil explores legal avenues to challenge the tariff hike under international trade rules.