Core Viewpoint - Brazil's recent trade policy actions indicate a deepening uncertainty in the global economic landscape, as the country seeks to respond to U.S. tariffs on Brazilian goods through its "reciprocity law" [1][4]. Trade Policy Developments - The Brazilian Ministry of Foreign Affairs has formally requested the trade agency Camex to analyze whether to implement targeted measures under the "reciprocity law" in response to U.S. tariffs [1]. - The "reciprocity law" provides Brazil with a legal framework to impose countermeasures, including tariffs, against unilateral trade barriers [1]. Impact on Trade and Markets - U.S. tariffs on certain Brazilian products have heightened uncertainty in Brazil's export environment, despite some key exports like orange juice and aircraft being temporarily exempt [4]. - The tariff adjustments are expected to affect not only bilateral trade flows but also commodity market prices, multinational supply chain strategies, and investor confidence in Latin American markets [4]. Future Actions and Implications - Camex is set to complete its report within 30 days to evaluate the potential use of the reciprocity law, which may lead to measures targeting specific industries and products [7]. - The initiation of this process signals Brazil's more proactive stance in trade policy, potentially seeking measures in agriculture, mining, or manufacturing sectors [7]. Broader Economic Context - This dynamic increases uncertainty in global trade tensions, with potential short-term volatility in commodity prices such as agricultural products and metals [10]. - The actions taken by Brazil reflect a shift in the stance of emerging market economies in the international trade landscape, possibly encouraging other countries to adopt similar legal mechanisms in future trade disputes [10].