Brazil’s finance minister, Fernando Haddad, said U.S. President Trump’s tariffs are “a generic thing for everyone,” and reaffirmed Lula administration’s willingness to negotiate
02/12/2025
Brazil’s minister of institutional relations, Alexandre Padilha, stated on Tuesday (11) that Brazil “will not engage in any trade war” when commenting on the tariffs imposed by U.S. President Donald Trump on steel and aluminum imports. This measure directly impacts Brazil, which was the second-largest supplier of steel to the U.S. last year, trailing only Canada.
“Trade wars benefit no one. Brazil does not encourage and will not engage in any trade war,” he said during a meeting with mayors.
On Monday (10), President Trump imposed a 25% tariff on steel and aluminum imports to the U.S. The Brazilian government is still considering how to respond to this measure, but the initial inclination is to seek negotiations with the U.S. government rather than adopting retaliatory measures.
One approach could be to persuade the Trump administration to reinstate the export quota policy, which had been negotiated between Brasília and Washington during the first term of the Republican president (2017-2021).
Finance Minister Fernando Haddad said that unilateral tariff impositions by the U.S. government, such as the 25% tariffs on steel and aluminum imports, “are counterproductive for the improvement of the global economy” and that “the global economy loses with this contraction.” Minister Haddad also mentioned that “this is not a decision against Brazil; it is something generic for everyone” and reaffirmed the government’s willingness to negotiate. According to him, the Ministry of Development, Industry, Commerce, and Services is gathering information to present to President Lula for decision-making.
The Aço Brasil Institute, which represents steel manufacturers in the country, expressed surprise at President Trump’s decision to impose a 25% import tariff on steel regardless of origin. However, they remain confident “in the opening of dialogue between the governments of the two countries to reestablish the flow of steel products to the United States based on the agreements reached in 2018.”
The taxation nullifies an agreement made with Brazil during Mr. Trump’s first term, which set export quotas for the U.S. market at 3.5 million tonnes of slabs and semi-finished products and 687,000 tonnes of rolled products. This measure was negotiated after the U.S. had established 25% import tariffs. “It’s important to note that the negotiation that took place in 2018 met not only Brazil’s interest in preserving access to its main external steel market but also the interest of the American steel industry, which demands Brazilian slabs,” Aço Brasil stated.
In 2024, the U.S. imported 5.6 million tonnes of slabs to meet domestic demand, as they are not self-sufficient in this type of steel product. Of this volume, 3.4 million tonnes came from Brazil. According to Aço Brasil, Brazilian sales fully complied with the conditions established under the “hard quota” regime. The institute also notes that Brazil has been “plagued” by a significant increase in imports from countries engaging in “predatory competition, especially China.” As a result, the industry has requested that the Brazilian government implement trade defense measures, currently applicable to nine types of steel (NCMs).
“Therefore, contrary to the claims in the American government’s decision of February 10, there is no possibility of circumvention occurring in Brazil for steel products originating from third countries to the United States,” Aço Brasil argues. According to the institute, the United States and Brazil have a longstanding commercial partnership historically favorable to the U.S., with an average trade surplus of $6 billion over the past five years. Considering the main items in the steel chain (coal, steel, and machinery and equipment), the U.S. and Brazil negotiate approximately $7.6 billion, with the U.S. having a surplus of $3 billion.
*By Fabio Murakawa, Ruan Amorim, Guilherme Pimenta e Stella Fontes — Brasília and São Paulo
Source: Valor International