Brazilian President Lula threatens reciprocity in dispute with Trump over steel tariffs

(Patria) - Brazilian President Luiz Inacio Lula da Silva has promised "reciprocity" in response to the 25 percent tariff on steel imports announced by US President Donald Trump, AFP reported.

"There is no doubt there will be reciprocity" from Brazil, the second largest exporter of steel to the United States after Canada, Lula said on Radio Clube do Para.

Brazil sent 4.08 million tons of metal to the United States in 2024.

"If they tax Brazilian steel, we will react commercially or file a complaint with the World Trade Organization or tax the products we import from there," the leftist leader added.

Brazil imports a large number of steel products from the United States, including industrial machinery, automobile engines and parts for its aviation industry.

"Trump can say whatever he wants, he is the president of the United States. But he cannot do whatever he wants because if he does something that has an impact on other countries, there is always a reaction," Lula said.

Earlier this week, Brazilian Minister for Institutional Relations Alexandre Padilha said the country has no intention of entering a trade war with the United States, although Lula previously promised that any US tariffs on his country would be met in kind.

Since taking office, Trump has announced a wide range of tariffs on some of America's largest trading partners, claiming they will help address unfair practices. He signed executive orders for 25 percent tariffs on steel and aluminum imports starting March 12.

Trump also signed plans on Thursday for "reciprocal tariffs" that could equally hit allies and competitors, in a dramatic escalation of the international trade war that economists warn could fuel inflation in the United States.

"Whatever countries charge the United States of America, we will charge them," Trump said.

Lula previously said he would rather "improve our relationship with the United States" than fight over tariffs with Brazil's second-largest trading partner after China.

Trump imposed similar steel tariffs during his first term to protect American manufacturers facing, as he complained, unfair competition. Brazil was exempted at the time after agreeing to import quotas.