President Luiz Inacio Lula da Silva announced on Friday in Sao Paulo that Brazil would respond to the imposition of steel tariffs by U.S. President Donald Trump. Lula suggested that Brazil might initiate a complaint with the World Trade Organization or impose taxes on American products.
Lula expressed concern over the potential taxation of Brazilian steel by the U.S., indicating that Brazil would take action, stating, "If they do it, we will react commercially." Brazil stands out as one of the main sources of steel imported to the U.S. With Trump's recent decision to raise tariffs on steel and aluminum imports to a fixed rate of 25%, Lula's response signals a more aggressive stance than previously implied by his economic team, despite calls for dialogue and negotiation with the U.S.
The White House referred to Brazil as an example of unfair trade practices in a fact sheet released when Trump announced the tariff increases. Lula emphasized his desire for harmonious relations with the U.S. and highlighted the balanced trade between the two countries, while warning of reciprocal actions if Brazil faces any measures from the U.S.
Since 2008, the U.S. has maintained a trade surplus with Brazil, exceeding $253 million last year across over $80 billion in bilateral trade. Lula expressed apprehension over Trump's protectionist policies, noting that they contradict the traditional American support for free markets.