Brazil to Consider Measures Against U.S. Tariffs, Including WTO Action

Brazil plans to examine all possible measures against U.S. tariffs, including action at the WTO, to mitigate negative effects on its steel and aluminum exports. The tariffs, effective immediately, are viewed as unjustified by Brazil, which has strong trade ties with the U.S. President Lula da Silva has urged his team to engage in dialogue with the Trump administration.

The Brazilian government announced on Wednesday its intention to evaluate all potential responses to new U.S. tariffs, considering actions at the World Trade Organization to mitigate the adverse effects of these measures and protect national interests. The U.S. tariffs, imposed by President Donald Trump on all steel and aluminum imports, commenced on the same day as the announcement, aiming to reshape global trade in favor of the United States.

Brazil’s Foreign Ministry, in conjunction with the Ministry of Development, Industry and Foreign Trade, indicated that the new tariffs would significantly hinder Brazilian steel and aluminum exports to the United States, which amounted to approximately $3.2 billion in 2024. The government condemned the U.S. decision as an “unjustified and mistaken” action, particularly in light of the historical cooperation and economic ties between the two countries.

As the third-largest importer of U.S. steelmaking coal and the primary exporter of semi-finished steel to the United States, Brazil’s position is notably impacted by these tariffs. It was also emphasized that the U.S. has a substantial trade surplus with Brazil, totaling around $7 billion in goods for 2024.

In response to the tariffs, President Luiz Inacio Lula da Silva has directed his economic team to pursue dialogue with the Trump administration. Finance Minister Fernando Haddad conveyed this direction after discussions with members of Brazil’s steel industry in Brasilia. He remarked that President Lula encouraged a calm approach, recalling that Brazil had successfully negotiated under even more challenging circumstances in the past.

In summary, Brazil is proactively considering a range of measures, including engaging with the World Trade Organization, in response to the newly imposed U.S. tariffs on steel and aluminum. The Brazilian government views these tariffs as unjustified and detrimental to its economic interests, particularly given the historical context of bilateral trade relations. The administration seeks to maintain dialogue with the U.S. to navigate this complex situation effectively.

Original Source: news.cgtn.com