Brazil mulls 'all possible actions' as Congress lays framework for trade retaliation

BRASILIA (Reuters) -Brazil said on Wednesday it is assessing all potential responses to the United States' 10% tariffs on imports from Latin America's largest economy, while its Congress approved a bill outlining the framework for trade retaliation.

"The Brazilian government is evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization, in defense of legitimate national interests," the government said in a statement.

Minutes earlier, Brazil's Congress approved a bill, which still requires a ratification by President Luiz Inacio Lula da Silva, that establishes a legal framework for Brazil to respond to potential unilateral trade measures targeting its goods and services, including countermeasures such as tariffs.

Though the text did not specify the United States, the bill gained traction with lawmakers in recent weeks amid the U.S. administration's threats to impose tariffs.

The government also highlighted the framework's approval in its response to the U.S. tariffs.

Brazil also said it remains open to dialogue and believes U.S. claims the tariffs are reciprocal do not "reflect reality", pointing to the U.S. recording "recurrent and significant trade surpluses in goods and services with Brazil."

(Reporting by Victor Borges, Maria Carolina Marcello and Marcela Ayres in Brasilia, and Andre Romani in Sao Paulo; Editing by Sarah Morland)