Brazil Evaluates Response to U.S. Tariffs on Steel and Aluminum

The Brazilian government plans to assess potential responses against the U.S. tariffs on steel and aluminum, including WTO actions. With exports to the U.S. worth $3.2 billion in 2024, Brazil denounces the tariffs as unjustified. President Lula’s administration seeks dialogue with the U.S. to address this issue.

The Brazilian government has announced its intent to evaluate all potential responses to the new U.S. tariffs, including pursuing actions through the World Trade Organization (WTO). This decision aims to mitigate the detrimental effects of U.S. tariffs on Brazil’s national interests.

The tariffs on steel and aluminum imports imposed by U.S. President Donald Trump commenced on Wednesday, marking an escalation in efforts to reshape global trade dynamics favorably towards the United States.

Brazil’s Foreign Ministry noted that the increased tariffs would notably impact its steel and aluminum exports to the U.S., which were valued at approximately $3.2 billion in 2024. The government criticized the tariff hike as “unjustified and mistaken,” especially considering the long-standing cooperation between Brazil and the U.S.

Brazil ranks as the third-largest importer of U.S. steelmaking coal and holds the position of the largest exporter of semi-finished steel to the United States. Moreover, the U.S. has maintained a significant trade surplus with Brazil, which stood at about $7 billion in goods in 2024.

In response, President Luiz Inacio Lula da Silva has instructed his economic team to engage in dialogue with the Trump administration regarding these tariffs. Finance Minister Fernando Haddad remarked post-meeting with local steel industry representatives that President Lula encouraged a calm approach, recalling past negotiations conducted under more adverse conditions.

In summary, Brazil is preparing to take all necessary actions against the newly imposed U.S. tariffs, including possible WTO interventions. The Brazilian government emphasizes the negative economic impact these tariffs will have on its exports and has called the U.S. decision detrimental given the historical ties between the two nations. Through diplomatic efforts, Brazil aims to mitigate the repercussions of these trade measures.

Original Source: news.cgtn.com