 "Brazil's President Luiz Inacio Lula da Silva speaks during the opening of the National Construction Industry meeting at the headquarters of the Brazilian National Confederation of Industry (CNI) in Brasilia, Brazil November 26, 2024. File Image- Reuters")
Brazil’s President Luis Inacio Lula da Silva on Friday vowed “reciprocity” in response to a 25-percent levy on steel imports announced by US President Donald Trump. He said that Brazil would react to Trump’s decision, suggesting his government could file a complaint at the World Trade Organization, or tax US products.
“There is no doubt, there will be reciprocity” from Brazil – the second-largest exporter of steel to the United States after Canada, Lula told Radio Clube do Para.
“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 in a radio interview.
Lula’s comments indicate a more assertive stance on tariffs than previously suggested by his economic team. Both his finance and trade ministers had emphasised the need for dialogue and possible negotiations with the United States.
In a fact sheet released on Thursday, coinciding with Trump’s decision to eliminate long-standing low tariff rates and align them with those of other countries, the White House highlighted Brazil’s ethanol tariffs as an example of unfair trade practices.
Lula said he wants Brazil’s relations with the US to be “harmonious” and noted the two countries have balanced trade, but added: “If there is any action against Brazil, there will be reciprocity.”
Impact Shorts
More ShortsThe U.S. has run a trade surplus with Latin America’s largest economy since 2008, which reached $253 million last year on more than $80 billion of bilateral trade.
The Brazilian leader said he was worried about Trump’s “protectionism”, saying it goes against the United States’ long-standing defense of free markets.
With inputs from agencies