Brazil is preparing to target US audiovisual royalties and pharmaceutical patents as part of its retaliatory response to Washington's new 25% tariff on Brazilian goods.
The measures, which are set to take effect on July 22, represent a significant escalation in the trade dispute between the two economies.
By focusing on intellectual property and service-based revenues, Brazil aims to pressure US industries that are highly sensitive to regulatory changes in the South American market.
The decision to target film royalties and drug patents marks a strategic shift in Brazil's trade defense toolkit.
Rather than imposing reciprocal tariffs on physical goods, which could be less effective given the structure of US exports, the government is looking to restrict revenue streams for Hollywood studios and pharmaceutical companies.
This approach could disrupt licensing deals and patent enforcement mechanisms, creating immediate financial headwinds for affected US firms.