Xinhua Agency, Beijing, August 30. The Brazilian government recently launched procedures related to the Economic Parity Act to deal with the United States imposing a 50% tariff on Brazilian exports. Brazilian President Lula said on the 29th that although Brazil has begun to prepare countermeasures, it is "not in a hurry" to retaliate against the United States and still hopes to resolve the dispute through negotiations.

Lula: 'No rush' to retaliate

Lula authorized the Brazilian government department to conduct an investigation to assess whether the US unilateral tariff behavior meets the conditions for the use of the economic reciprocity bill, and to submit a technical analysis report within 30 days to propose countermeasures.

¡°This [investigation] takes some time,¡± Lula said in an interview on the 29th, ¡°we must tell the United States that we can also take action against them.

Lula said that Brazil is willing to have a "24-hour" dialogue, but unfortunately it has not been able to make contact with high-level US officials so far. Brazil has submitted a request to the World Trade Organization for consultation on the US tariff behavior, but the international procedure is lengthy, so it is necessary to simultaneously promote the domestic legal mechanism.

The Brazilian Congress passed the Economic Equivalence Act in April this year. In the event that unilateral actions by other countries or economies have a negative impact on Brazil's international competitiveness, the Brazilian Foreign Trade Commission can "take countermeasures in the form of restricting the import of goods and services" by imposing taxes on products exported to Brazil.

At present, the United States imposes an ad valorem tariff of 40% on Brazilian products exported to the United States, and most Brazilian products exported to the United States face tariff rates as high as 50%, including meat, coffee, fruits, etc. But Brazilian aircraft, nuts, orange juice and some metal products are exempt.

Brazil's Treasury Minister Fernando Ade said on Thursday that Brazil could also file a lawsuit in U.S. courts over the U.S. government's high tariffs on a number of Brazilian imported US goods.

U.S. Court: Trump's Taxation of Multiple Countries Is Illegal

At the same time, the U.S. Court of Appeals for the Federal Circuit ruled on the 29th that the law cited by U.S. President Trump when approving the imposition of tariffs on many countries did not actually give him the power to levy these taxes.

U.S. media said the ruling was a heavy blow to the Trump administration's radical trade policy.After the Federal Circuit Court of Appeal issued the ruling, Trump posted on social media insisting that "all tariffs remain valid" and said he would appeal to the Supreme Court.

After Trump took office in January this year, he invoked the International Emergency Economic Powers Act of the United States and introduced a series of tariff increase measures by directly issuing executive orders without the approval of Congress. The U.S. Court of International Trade ruled in May that the Trump administration's move was illegal. Subsequently, the Trump administration appealed to the Court of Appeals for the Federal Circuit.

According to the 29th ruling, the ruling will not come into effect until October 14, so that the Trump administration can continue to appeal to the Supreme Court of the United States.