Aerial view of an iron ore mine in Congonhas, Minas Gerais state, Brazil on February 11, 2025. Brazil has no intention of entering a trade war with the United States, a government minister said on February 11, after US President Donald Trump imposed a 25-percent levy on steel. (Photo by Douglas MAGNO / AFP)
Brasília, Brazil — Brazil has no intention of entering a trade war with the United States, a government minister said Tuesday after US President Donald Trump imposed a 25-percent levy on steel.
Brazil is the second-largest exporter of steel to the United States after Canada, providing 4.08 million tonnes of the metal in 2024.
Article continues after this advertisementAsked about potential retaliation to the tariffs, institutional relations minister Alexandre Padilha told journalists “the government has not discussed this at all,” but was opposed to a commercial standoff.
FEATURED STORIES BUSINESS BIZ BUZZ: New duties for the rich BUSINESS DA further cuts rice retail prices by P2-P3 BUSINESS PSEi to rebound to 7,600, says First Metro Securities“Brazil does not encourage and will not enter into any trade war,” said Padilha.
READ: Canada, Mexico, EU slam ‘unjustified’ Trump steel tariffs
Article continues after this advertisementHowever, this stands in contrast to comments made by President Luiz Inacio Lula da Silva last month, vowing reciprocation if Trump hit Brazil with tariffs.
Article continues after this advertisement“It’s very simple: if he taxes Brazilian products, Brazil will reciprocate in taxing products that are exported from the United States,” said the 79-year-old Lula.
Article continues after this advertisementLula said he would prefer to “improve our relationship with the United States” and boost trade ties with Brazil’s second-largest trading partner after China.
Trump imposed similar steel tariffs during his first term of office to protect US producers faced with what he complained to be unfair competition.
Article continues after this advertisementHowever, Brazil was exempted after agreeing to import quotas.
netent gamesJackson Campos, director of institutional relations at AGL Cargo export company, told AFP that Brazil was likely to opt for diplomacy over retaliation.
“Negotiating through diplomacy will be one of the options, because that has the most immediate effect,” he said.
He said if an agreement could not be made, Brazil could try and diversify the market by looking towards India, South Korea and Africa.
Neda made the pronouncement after the Philippine Statistics Authority reported that the country’s inflation in August eased to 3.3 percent, its slowest rate in seven months due to a slower rise in food and transport costs.
“Employers were more selective with their hires and less likely to expand their workforces, citing concerns about demand and an uncertain economic outlook,” the Fed said in its “beige book” survey of economic conditions.
The American Chamber of Commerce in Brazil said in a statement that it hopes for a “negotiated solution” as the tariffs to be applied on steel and aluminum have “the potential to significantly affect Brazilian exports in these sectors.”
“In 2024, Brazil exported more than $5.7 billion in steel and iron to the United States, the main destination for Brazilian exports. In the same year, Brazil exported $267 million in aluminum to the American market, equivalent to 16.7 percent of Brazil’s global sales,” it said.
The Brazilian Steel Institute said the country’s market “has also been hit by a significant increase in imports from countries that practice predatory competition, especially China.”
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The institute said that as a result of trade defense measuresmoonrich88, there was “no possibility of Brazil circumventing steel products from third countries to the United States,” as alleged by Trump.
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