Brazil is analyzing its response to US tariffs, but Lula's order is to negotiate first.
On Sunday, Trump told reporters that he intends to impose a 25% tariff on steel and aluminum imports into the United States.
BRASILIA (Reuters) - The Brazilian government is studying possible measures to respond to threats from US President Donald Trump to impose tariffs on Brazilian products, but no decision has been made and President Luiz Inácio Lula da Silva's order is to first try to negotiate, two sources with knowledge of the discussions said.
On Sunday, Trump told reporters that he intends to impose a 25% tariff on steel and aluminum imports into the U.S., which would directly impact Brazilian producers, since Brazil is the second-largest supplier to the U.S. market, behind only Canada.
"The tradition of Brazilian diplomacy is to always prioritize negotiation, and this aligns with what the president (Lula) advocates. The reciprocity he defended is only if no other measure works," a source from the Planalto Palace told Reuters, mentioning Lula's statement that Brazil would respond to any potential US tariffs with reciprocity.
A second source within the Brazilian government, this one from the diplomatic corps, pointed out that there is no reason for Brazil to announce decisions without knowing what will actually come from the US, nor when, and mentioned a speech by the Minister of Foreign Affairs, Mauro Vieira, last week, in which he stated: "We will not succumb to the anxiety of the dizzying pace of real-time media and social networks. Nor will we allow ourselves to be driven by immediacy in responding to the challenges that arise. We will continue to be guided by a serene, sober, and pragmatic diplomatic style."
The decision to negotiate, however, does not mean that the Brazilian government is not analyzing possibilities. According to sources, different ministries have been studying what taxation measures could be adopted by Brazil that would have the least impact on the country.
However, no decision has been made, and no concrete measures have been discussed directly with the president, one of the sources said. The intention is to wait and see what comes from Washington, but so far the White House has not officially announced tariffs on steel and aluminum.
"If something concrete comes out of it, the president should talk to the ministers on Tuesday or the day after," a source said.
The meeting would include Finance Minister Fernando Haddad, Development, Industry and Trade Minister Geraldo Alckmin, and Foreign Minister Vieira.
In an interview this Monday afternoon, Alckmin echoed what the government has been officially saying: "The last time this was done, there were quotas. Let's wait. Our position is always one of cooperation and partnership for the benefit of our populations," said Alckmin, who is also the Vice President of the Republic.
The episode mentioned by Alckmin occurred in 2018, during Trump's first term, when the Republican also applied a 25% tariff on Brazilian steel. At the time, the US government negotiated with Brazil the adoption of an annual export quota without the surcharge.
