Key Takeaways
- Brazilian President Lula da Silva prioritizes tariff talks with the US to avoid worsening relations.
- The US has increased tariffs on Brazilian products to 50%, affecting industries such as coffee, beef, and seafood.
- Brazil has submitted a request for consultations at the World Trade Organization (WTO) over tariffs imposed by the United States.
Brasilia: Brazilian President Luiz Inacio Lula da Silva has ruled out the possibility of a mutual increase in tariffs on US goods, saying that the priority at the moment is negotiations.
“We are not announcing reciprocal measures; at the moment we do not want anything that could worsen our relations. We are trying to get closer now,” Lula said today.
Brazil’s government has unveiled an aid package to protect companies affected by US tariffs. The package includes credit lines for exporters and government purchases of products struggling to find alternative markets.
On July 30, Trump signed an executive order increasing tariffs on Brazilian products to 50%, while also introducing a list of 700 exceptions in strategic sectors such as aviation, energy, and agriculture. In response, the Brazilian authorities submitted a request for consultations at the World Trade Organization (WTO) over tariffs imposed by the United States.
The move is still set to hurt industries such as coffee, beef, seafood, textiles, footwear and fruit.
