Brazilian President Luiz Inácio Lula da Silva said Friday that his government has triggered a mechanism under Brazil's economic reciprocity law in response to U.S.-imposed tariffs, saying the move was meant to show that his country must be respected.

In July, U.S. President Donald Trump imposed tariffs on hundreds of Brazilian exports, with duties reaching as high as 37.5% on some products. The Trump administration has accused Brazil of unfair trade practices, while Lula has rejected those allegations and said they are politically motivated ahead of Brazil's October election.

The tariff fight touches one of Brazil's most important commercial relationships. The United States is Brazil's second-largest trading partner after China, and the exports facing higher duties span everyday goods — coffee, orange juice and beef among them — as well as aircraft built by Embraer, one of the world's largest planemakers. Brazilian officials have also noted that the United States has long run a goods trade surplus with Brazil, selling more to the country than it buys from it, a record Lula's government points to in rejecting the unfair-trade allegations.

Lula is seeking reelection against Sen. Flávio Bolsonaro, a Trump ally who met with U.S. officials, including Trump, in Washington weeks before the administration proposed higher tariffs on Brazilian goods.

"Yesterday, we invoked the reciprocity law to show that we are not to be taken lightly," Lula said in an interview with Brazilian podcasters. "We respect ourselves. I am very calm knowing what could happen, and I am prepared to debate the defense of Brazil anywhere in the world."

Brazil's Foreign Ministry said in a statement late Thursday that it is requesting diplomatic consultations with U.S. counterparts on the issue, describing the move as part of Lula's effort "to privilege dialogue and negotiation in its international relations." The start of those proceedings does not necessarily mean Brazil will retaliate against U.S. tariffs.

The reciprocity law, which Congress passed with broad support and Lula signed in July as a direct answer to the U.S. tariff hikes, created a new domestic framework for answering foreign trade restrictions. It authorizes the government's foreign-trade council, CAMEX, to adopt countermeasures ranging from higher import tariffs to restrictions on trade in services, investment and intellectual property — though activating any of them would require a further decision once the consultations play out. The statute marks a shift from 2018, when Brazil declined to retaliate against the first Trump administration's steel and aluminum tariffs and instead sought exemptions.

"I don't want any fight with the United States," Lula said Friday. "Unfortunately, they are spreading falsehoods."

Earlier this month, the U.S. State Department revoked the visa of Brazil's ambassador to Washington in retaliation for Brazil's denial of visas last month to two American diplomats who sought to visit ahead of the October election.

The U.S. government has also accused Brazil of stalling approval of Trump's nominee for ambassador in Brasilia. Brazilian officials, meanwhile, say the United States should first have sought the Brazilian government's approval before submitting the nomination to Congress, as diplomatic protocol requires.

Since U.S. Secretary of State Marco Rubio revoked the Brazilian ambassador's visa but did not order her expelled, U.S. officials have said the Trump administration does not want the dispute to escalate.

Those officials, who spoke on condition of anonymity to discuss internal administration deliberations, have said repeatedly that Rubio's limited response was designed to give Lula time and space to back down. They also said the United States would respond quickly if Lula's government chose to escalate the matter, and that declaring the Brazilian ambassador persona non grata and expelling her from the U.S. would be a logical next step.

For now, each side has left itself an off-ramp: Lula opened consultations rather than countermeasures, and Washington stopped short of expelling Brazil's ambassador. The question ahead is whether the requested consultations can settle the tariff and visa disputes before Brazil's October presidential vote.

Lula said again that Trump has treated him well, but warned that any foreign governments "who come here to meddle in the election, will lose."

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Associated Press writer Matthew Lee contributed from Washington.

This story was originally featured on Fortune.com