Brazil cannot be 'no one's backyard,' says Haddad.

247 - Finance Minister Fernando Haddad said on Saturday (23) that Brazil will not accept being treated as the “backyard” of any foreign power in the face of the tariff escalation imposed by the United States. The statement was made during a PT event, reports the g1.

The tariff hikes announced by US President Donald Trump are already impacting small Brazilian businesses that had export plans. In the Brazilian government, the measure is seen more as a political gesture than an economic one, since Trump justified the trade barriers in the context of the legal proceedings against his ally Jair Bolsonaro, who is being prosecuted for attempted coup d'état in the Supreme Federal Court (STF).

Defending sovereignty and expanding partnerships.

Haddad emphasized that the country's strategy is to maintain dialogue with various nations and blocs, without subordination to a single partner. “We are facing this geopolitical challenge. Brazil cannot be anyone's backyard,” the minister stated. “We have the size, density, and importance to guarantee our sovereignty. We cannot choose just one partner; we must be partners with everyone: the European Union, Asia, BRICS, the Middle East, Southeast Asia.”

He also highlighted the need to strengthen ties with India, which has the largest population on the planet but maintains a still limited trade relationship with Brazil. At the same time, Haddad stressed that the partnership with the United States should continue, but with balance.

 “It never crossed our minds to give up the partnership with the US. But not under the conditions that are being imposed,” he said. “We have always maintained our dignified and sovereign stance in dealing with issues common to two peoples who have a 200-year history. There is no reason for this to change, especially since the Trump administration is temporary, and Brazil and the US are permanent.”

Alckmin: fare hike is "unjustified"

Vice President Geraldo Alckmin (PSB) also criticized the White House's decision, arguing that the United States already enjoys advantages in the bilateral trade relationship.

 "A few words about the tariff increase. First of all, it's unjustified. If we look at the Brazil-United States trade relationship, of the 10 products they export most to Brazil, 8 pay no tax. It's zero. The average tariff is 2,7%, which is very low. And they have a trade surplus, both in goods and services," he stated.

According to Alckmin, Brazil will continue negotiating to reduce the tariffs imposed by Washington. "What President Lula instructed was, first, negotiation. We will not give up on lowering this tariff and removing more products," he added.

Strategic risk in digital data

Haddad also drew attention to Brazil's dependence on technology. He reported that 60% of Brazilian digital data is currently processed outside the country, which he considers a strategic risk. "We have to take steps to ensure that it is processed here, and preferably by Brazilian companies as well," he argued. The minister explained that the Finance Ministry is working on a project to transform Brazil into an international hub for... data centers and artificial intelligence, encouraging the national industry in this sector.

Economic growth prospects

Regarding the economy, Haddad assessed that Brazil has the potential to grow by an average of 3% per year without inflationary pressures, provided it maintains investments in strategic sectors such as infrastructure, education, industry, and agriculture.

He acknowledged, however, that the Gross Domestic Product (GDP) is expected to register slower growth in 2025 compared to 2024. According to the minister, the slowdown was planned as a way to contain inflation. “We had some turbulence in the first half of the year, and the agenda ended up being a little delayed. But I see in Congress, in leaders like Hugo Motta and Davi Alcolumbre, the desire to deliver a great deal in terms of the State for Brazilian society,” he concluded.