Brazil will not immediately retaliate against the U.S. tariffs on steel and aluminium imports, opting instead to pursue negotiations, Finance Minister Fernando Haddad said on Wednesday.
The decision follows President Donald Trump’s move to increase tariffs on all U.S. steel and aluminium imports, which took effect the same day, triggering swift retaliation from Canada and the European Union.
Brazil, one of the largest suppliers of steel to the U.S., had previously considered filing a complaint with the World Trade Organization or imposing taxes on U.S. goods in response. However, President Luiz Inacio Lula da Silva has directed his economic team to seek diplomatic dialogue.
“President Lula told us to remain calm, noting that in the past we have negotiated under conditions that were even more unfavourable than the current ones,” Haddad said after meeting with representatives from Brazil’s steel industry in Brasilia.
Vice President Geraldo Alckmin has already initiated talks, holding what his office described as a “positive” call with U.S. Commerce Secretary Howard Lutnick last week. The two officials agreed to continue discussions on U.S. tariff policy.
“Dialogue between the two governments will continue,” Alckmin’s office stated.
While Brazil has refrained from immediate countermeasures, the government is closely monitoring developments as it prepares for further negotiations with U.S. officials.
