Brazilian Foreign Minister Alexandre Padilha said Tuesday that Brazil won’t retaliate against President Donald Trump‘s 25% tariffs on steel and aluminum, which affect Brazilian exports.
On Monday, President Trump announced a global-level imposition of tariffs on steel and aluminum imports, a vowed measure to foster the national industries and US producers.
Next to Canada and Mexico, Brazil is one of the top steel suppliers to the US.
During the Meeting of New Mayors opening ceremony in Brasilia, Brazil’s capital city, Minister Padilha said the Federal Government led by President Luiz Inacio Lula da Silva has not discussed effective measures to take in response to the 25% tariff. Yet, he asserted a commercial war with the US was not in line.
“What President Lula has always said, very clearly, and other countries too: trade wars are not good for anyone. One of the important advances the world has made in recent years has been precisely creating an instrument for dialogue between countries, strengthening free trade, and defining the role of the WTO (World Trade Organization) in this regard,” said Padilha.
However, Lula had previously taunted the US government with retaliatory tariffs on US goods if Trump attempted to push for tariffs on Brazilian exports—“It’s very simple: if he taxes Brazilian products, Brazil will reciprocate in taxing products that are exported from the United States,” said Lula during a press conference on January 31.
With the Minister’s comments, Brazil favors a cool-down on diplomatic frictions and pushes for further negotiations rather than taking on the Trump administration.
“So Brazil does not encourage and will not enter into any trade war. We will always be in favor of strengthening free trade,” added Padilha.