June 18, 2025
On June 12, 2025, Kobre & Kim convened industry and legal leaders at its São Paulo office for a roundtable discussion titled “U.S.–Brazil Relations: Rising Tariffs and Their Knock-on Effects for Cross-Border Disputes.”
Moderated by Kobre & Kim Chief Strategy Officer Gary Singer, the event brought together a panel of seasoned professionals, including Luiza Paparounis (BTG), Victor Scalet (XP Investimentos), Ben Mandel (Jubarte), and Kobre & Kim’s Ana Frischtak and Victor Clementino.
The panel examined the mounting commercial and legal challenges emerging from the U.S. government’s recent imposition of a 10% reciprocal tariff on all Brazilian imports (Executive Order 14257), alongside pre-existing tariffs on Brazilian steel and aluminum. In response, Brazil enacted the Trade Reciprocity Law, setting the stage for a potential tariff escalation and WTO dispute. More broadly, these actions are shifting world trade, with China likely to grow its economic influence across Latin America.
As panelists highlighted, these developments are already triggering a range of cross-border disputes—from pricing renegotiations and force majeure claims to trade remedy actions. Brazilian exporters are being forced to re-price goods, absorb tighter margins, and rethink supply chains, while courts in both countries weigh the legality of the new tariff regimes.
With global trade norms in flux and inflationary pressures building, the conversation emphasized the need for proactive legal and commercial strategies to navigate the uncertain terrain ahead. Unless economic conditions improve dramatically, the current tariff crisis may have lingering effects for years to come.
