Within the wake of oppressively weighty new tariffs levied by the Trump administration this week, Brazil’s finance minister indicated the nation’s authorities practising restraint somewhat than retaliating.
Dario Durigan mentioned Friday that the nation wasn’t contemplating an in-kind escalation in duties, and can choose as an alternative to strategically assess the scenario earlier than responding with its personal commerce measures. The US Commerce Consultant hit Brazil with 25 % duties in response to a year-long investigation into actions it mentioned prohibit U.S. commerce, together with regulating American know-how companies.
“There aren’t any grounds for speaking about retaliation in opposition to the US over the tariffs. What we’re discussing is evaluating reciprocal measures,” Durigan informed reporters, in keeping with Reuters.
The Brazilian authorities plans to have in mind the consequences on impacted industries and the potential financial ramifications earlier than publicizing plans to handle the tariffs. Durigan mentioned the federal government plans to “guarantee compliance with our fiscal targets and ship a strong macroeconomic end result for the nation as an entire, whereas recognizing that some particular sectors require consideration.”
The assertion is an about-face from the moments following the USTR announcement, when Brazilian President Luiz Inácio Lula da Silva’s workplace mentioned it was taking steps to impose reciprocal duties on the U.S.
Lula’s workplace denied Brazil’s engagement in any unfair commerce measures that might stunt U.S. enterprise, noting that tariffed American imports face an obligation fee of simply 3.1 %—and the overwhelming majority (76 %) enter the nation obligation free.
Coming into into pressure on Wednesday, the U.S. tariffs on Brazilian imports will have an effect on about 3,000 merchandise, with sure meals and equipment objects exempted. The tariffs will hit somewhat underneath one-fifth of the nation’s exports to the U.S. value round $7.4 billion.
Merchandise like attire and footwear are usually not exempt, and can face the brand new 25 % tariffs together with most favored nation charges. Footwear is a key vogue export for Brazil, and the U.S. imported 5.6 million pairs of sneakers value $82.25 million from the nation’s producers throughout the first six months of 2026.
Along with retaliatory duties, Lula’s workplace mentioned Brazil would contemplate non-tariff countermeasures and would seek the advice of the World Commerce Group’s dispute settlement mechanism.
Calling Wednesday’s announcement by the USTR a “lamentable milestone” within the relationship between the U.S. and Brazil in a press launch, Lula’s workplace emphasised that the nation is in a special boat than many U.S. buying and selling companions which have confronted heightened duties over the previous yr over commerce imbalances. In keeping with Brazilian authorities knowledge, the U.S. really “gathered a surplus of $424.5 billion in items and providers with Brazil over the previous 15 years.”
The assertion mentioned that Brazilian officers “have by no means left the negotiating desk” within the pursuit of extra favorable phrases with the U.S., and it refuted the claims made by USTR, saying they had been with out justification.
