Brazilian President Luiz Inacio Lula da Silva has promised to retaliate with “reciprocity” after US President Donald Trump imposed a 25% tariff on steel imports. Lula indicated that Brazil might either file a complaint at the World Trade Organization (WTO) or take countermeasures against American goods.
In an interview with Radio Clube do Para on Friday, Lula made it clear “If they opt to tax Brazilian steel, we will respond commercially, either by suing them in the WTO or by taxing the products we import from them.”
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Brazil is the second-largest steel supplier to the US after Canada. Lula’s words are a harder stance on trade reprisal than his economic team had suggested up to now, which had concentrated on negotiation and discussion.
The White House justified its action, saying Brazil’s tariffs on American ethanol were a case of unfair trade practices. Trump’s action brings Brazilian steel tariffs in line with the rest of the world, essentially ending decades-old preferential rates.
Even as he asked for a “harmonious” relationship with Washington, Lula cautioned that protectionist policies are against America’s long-standing support for free trade.
The US has been in surplus of trade with Brazil since 2008, standing at $253 million last year out of over $80 billion in two-way trade. Yet Lula insisted that any move by the US against Brazil would be reciprocated.
