Brazil is preparing to explore all possible measures against U.S. tariffs on steel and aluminum, including actions at the WTO. The tariffs are viewed as harmful to Brazil’s $3.2 billion exports and criticized as unjustified given historical economic ties. President Lula has directed his team to engage in discussions with the Trump administration.
On Wednesday, the Brazilian government announced plans to evaluate all potential responses to the recent increase in U.S. tariffs on steel and aluminum imports, including actions at the World Trade Organization (WTO). This initiative aims to mitigate the detrimental effects of U.S. tariffs while safeguarding Brazil’s national interests.
U.S. President Donald Trump’s tariffs, effective immediately, are part of a broader strategy to reshape global trade to favor the United States. The Brazilian Foreign Ministry and the Ministry of Development, Industry and Foreign Trade indicated that these tariffs could severely impact Brazilian exports of steel and aluminum, which were valued at approximately $3.2 billion in 2024.
The Brazilian government deemed the U.S. decision an “unjustified and mistaken” action, given the established cooperative and integrated economic relationship between the two countries. Brazil ranks as the third-largest importer of U.S. steelmaking coal and holds the title of the largest exporter of semi-finished steel to the United States.
Furthermore, the United States has consistently maintained a trade surplus with Brazil, which reached around $7 billion in goods in 2024. In response to these developments, President Luiz Inacio Lula da Silva has directed his economic team to engage in discussions with the Trump administration. Finance Minister Fernando Haddad conveyed that President Lula urged calm and reminded that Brazil has successfully negotiated under more adverse conditions in the past.
In conclusion, Brazil’s government is preparing to address the impact of increased U.S. tariffs on steel and aluminum, including potential measures through the WTO. The administration criticizes the U.S. decision as unwarranted, highlighting the importance of their economic relationship. Meanwhile, President Lula emphasizes dialogue with the U.S. to seek a favorable outcome amidst challenging trade dynamics.
Original Source: news.cgtn.com
