Brazil is considering all possible responses to U.S. tariffs on steel and aluminum imports, including actions at the WTO. The U.S. tariffs are expected to disrupt $3.2 billion in Brazilian exports. The Brazilian government criticized the move as unjustified and plans to seek dialogue with the Trump administration.
The Brazilian government announced its plans to explore all potential responses to U.S. tariffs, including actions at the World Trade Organization (WTO). This decision follows the implementation of increased tariffs on steel and aluminum imports by U.S. President Donald Trump, intended to realign global trade to favor the U.S. Brazil aims to protect its national interests from the adverse effects of these tariffs.
According to a joint statement from Brazil’s Foreign Ministry and the Ministry of Development, Industry and Foreign Trade, the tariffs, effective immediately, are expected to significantly disrupt Brazilian steel and aluminum exports to the U.S., which accounted for approximately $3.2 billion in 2024. The Brazilian government criticized the U.S. decision as “unjustified and mistaken,” referencing the historic economic collaboration between the two countries.
Brazil holds a notable position in U.S. trade as the third-largest importer of steelmaking coal and the largest exporter of semi-finished steel. In 2024, the U.S. retained a significant trade surplus of about $7 billion with Brazil in goods, indicating a strong trade relationship.
In response to the tariff situation, President Luiz Inacio Lula da Silva has directed his economic team to engage in discussions with the Trump administration. Finance Minister Fernando Haddad communicated this approach following a meeting with local steel industry representatives in Brasilia, emphasizing the importance of maintaining calm and optimism. “President Lula told us to remain calm, noting that in the past we have negotiated under conditions that were even more unfavorable than the current ones,” Haddad said.
Brazil plans to assess various measures, including WTO action, in response to increased U.S. tariffs on steel and aluminum. The Brazilian government perceives these tariffs as detrimental to its economy, particularly affecting its $3.2 billion in steel and aluminum exports. The strong trade ties between the U.S. and Brazil underline the significance of this response, highlighting the necessity for diplomatic engagement.
Original Source: news.cgtn.com
