Brazil denies the trade war with the US

February 11, Brasilia: Brazil’s Foreign Minister says that the state won’t be involved in a trade war with the US after the US strikes a blow to the Brazilian trade.

Brazilian Foreign Minister Alexandre Padilha announced on Tuesday that Brazil will not respond with countermeasures to the newly imposed 25% tariffs on steel and aluminum by US President Donald Trump. Despite the impact on Brazilian exports, the government has no immediate plans for retaliation.

President Trump introduced the tariffs on Monday as part of a broader strategy to protect American industries and strengthen domestic steel and aluminum production. Brazil, alongside Canada and Mexico, is among the largest suppliers of steel to the US, making it significantly affected by the new trade restrictions.

Speaking at the opening ceremony of the Meeting of New Mayors in Brasilia, Padilha stated that President Luiz Inacio Lula da Silva’s administration has not deliberated on any specific countermeasures but reaffirmed Brazil’s commitment to avoiding a trade war with the US.

“President Lula has consistently emphasized—along with other nations—that trade wars benefit no one. One of the key achievements of recent years has been the establishment of mechanisms for dialogue between countries, promoting free trade and reinforcing the role of the World Trade Organization (WTO) in global commerce,” Padilha explained.

However, Lula had previously taken a firm stance against potential US tariffs on Brazilian exports. During a press conference on January 31, he warned that if Trump proceeded with trade barriers on Brazilian goods, Brazil would impose equivalent tariffs on US exports. “It’s very simple: if he taxes Brazilian products, Brazil will reciprocate by taxing US exports,” Lula had stated.

Despite Lula’s previous remarks, Padilha’s latest statement suggests that Brazil is taking a more diplomatic approach, seeking to ease tensions rather than escalate the situation. The government appears to favor negotiations over trade conflicts and aims to maintain stable economic relations with the US.

“Brazil does not support nor will it engage in any trade war. Our stance remains in favor of strengthening free trade,” Padilha retaliated.

This response signals Brazil’s preference for dialogue and diplomatic resolution rather than retaliatory measures, indicating a willingness to work with the US to resolve trade disputes through international trade frameworks.

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