Brazil’s Response to U.S. Steel Tariffs

SAO PAULO (Reuters) – President Luiz Inacio Lula da Silva stated that Brazil will respond to U.S. President Donald Trump’s tariffs on steel imports, hinting at potential complaints to the World Trade Organization (WTO) or imposing taxes on U.S. products.

> “I hear they are now going to tax Brazilian steel. If they do it, we will react commercially, either by filing a complaint to the WTO or taxing products we import from them,” Lula said during a radio interview.

Brazil is one of the largest suppliers of steel to the U.S. Trump recently raised tariffs on steel and aluminum imports to a flat 25%, with no exceptions.

Lula’s comments indicate a more confrontational stance compared to his economic team’s earlier suggestions, which emphasized dialogue and negotiations. The White House recently highlighted Brazil’s ethanol tariffs as examples of unfair trade practices in its fact sheet regarding the tariff increases.

Lula hopes for harmonious relations with the U.S. and noted that trade between the two nations is balanced. However, he warned, “If there is any action against Brazil, there will be reciprocity.”

Since 2008, the U.S. has maintained a trade surplus with Brazil, which reached $253 million last year amid over $80 billion in bilateral trade.

Lula expressed concern over Trump’s protectionist policies, indicating they contradict the U.S. traditional support for free markets.