Brazil has no intention of engaging in a trade war with the United States. On Tuesday, Brazil’s Minister of Institutional Relations, Alexandre Padilha, made this statement. Brazil’s position was announced following U.S. President Donald Trump’s imposition of a 25% tariff on steel. French news agency AFP reported this news.
Brazil is the second-largest steel exporter to the United States after Canada. In 2024, the country exported 4.08 million tons of steel to the U.S. Minister Padilha told journalists that the government had not discussed the matter but opposed trade stagnation. He made this statement when asked about Brazil’s possible response to the tariff issue.
He further stated that Brazil would not engage in a trade war with the United States nor encourage others to do so. However, this statement contrasts with the remarks made last month by Brazilian President Luiz Inácio Lula da Silva. President Lula had previously stated that if Trump imposed tariffs on Brazilian products, Brazil would also take retaliatory measures.
The 79-year-old Lula had said, “It’s very simple. If he imposes taxes on Brazilian products, then Brazil will also be willing to impose taxes on U.S. exports.” He also expressed his desire to improve relations with the United States and strengthen Brazil’s trade relationship with its second-largest commercial partner after China.
Brazil’s Finance Minister, Fernando Haddad, said that Trump’s unilateral tariffs were detrimental to global economic progress. However, he also noted that the new tariffs were not solely targeting Brazil but the entire world. He stated that before deciding how to respond to Trump’s actions, Brazil would observe the measures taken by other countries.
During his first term, Trump imposed similar steel tariffs to protect American manufacturers from what he considered unfair competition. However, Brazil was later granted an exemption after agreeing to import quotas.
Jackson Campos, director of institutional relations at the AGL Cargo export company, told AFP that Brazil might opt for diplomacy instead of retaliation. He said that diplomatic negotiations could be one of the alternatives.
The American Chamber of Commerce in Brazil issued a statement expressing hope for a negotiated solution, as the tariffs on steel and aluminum could significantly impact Brazil’s exports in this sector. In 2024, Brazil exported more than $5.7 billion worth of steel and iron to the United States, making the U.S. a major destination for Brazilian exports. In the same year, Brazil exported $267 million worth of aluminum to the U.S., representing 16.7% of Brazil’s global aluminum sales.