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Brazil is mulling over all possible actions, but will not immediately retaliate to US steel tariffs

Brazil is mulling over all possible actions, but will not immediately retaliate to US steel tariffs

Brazil's Finance minister said on Wednesday the country will not immediately retaliate to tariffs imposed on imports of steel and aluminium by the United States, but instead seeks talks. The government noted that it would consider all options.

The U.S. President Donald Trump increased tariffs on steel and aluminum imports, which took effect on Tuesday. This accelerated a campaign of reordering global trade to the U.S.'s benefit and drew swift retaliation by Canada and Europe.

The Brazilian government issued a statement in which it expressed regret for the "unjustifiable' move of the U.S. citing the history of economic and political integration between the U.S. and Brazil.

Brazil, the country that imports the most steel from the United States, has said it will take all measures possible to react in the coming weeks, including through the World Trade Organization.

After a meeting in Brasilia with local steel industry members, Fernando Haddad, the Finance Minister told reporters that President Luiz-Inacio Lula Da Silva had ordered his economic team on Wednesday to engage the Trump administration.

Haddad stated that "President Lula said to stay calm and noted that we have previously negotiated in conditions even less favorable than these current ones."

Last week, Brazil's Vice-President Geraldo Alckmin held a call that his office described as "positive" with U.S. Secretary of Commerce Howard Lutnick about U.S. Tariff Policy. The two governments agreed to continue the dialogue.

Brazil agreed in 2018 to a quota-system deal with the former U.S. Trump Administration, allowing the country to export semi-finished steel up to 3.5 millions tons to the U.S.

Aco Brasil, the lobby for Brazil's steel industry, defended in a statement the system of quotas that was abolished on Wednesday when the new tariffs came into effect.

Rui Costa said that Brazilian and U.S. officials will meet on Friday to try and reach an agreement on tariffs.

Costa said that "reciprocity" is the standard diplomatic procedure, but that a decision final would only be taken after Friday's summit.

Brazil's steel industry maintains a "mutually advantageous complementary" relationship with the United States. It is the third-largest importer of U.S. coal for steelmaking and the biggest exporter of semifinished steel to the United States.

(source: Reuters)