Brazil will protect its economic sectors and ensure it is respected following a U.S. proposal to impose a 25% [1] tariff on Brazilian products.
The move signals a potential trade confrontation between two of the largest economies in the Americas, threatening industrial stability and agricultural exports.
Finance Minister Dario Durigan announced the government's stance during a press conference in Brasília on June 15 [1]. He said that the country's response is rooted in a broad national consensus regarding reciprocity.
"The country will protect itself, it will make itself be respected," Durigan said [1].
To resolve the dispute, Durigan said that President Lula may send a letter or call President Trump to discuss the tariffs [3]. The minister said that while the U.S. may have political interests in supporting the Bolsonaro family, there is room to negotiate on specific issues such as ethanol, and big tech [2].
Regarding the timeline for a resolution, reports vary. Some accounts suggest the government is conducting a careful analysis without a set date [1]. However, Durigan said that Brazil and the U.S. could reach a bilateral agreement on the taxation within 30 days [2].
This diplomatic push follows a period of tension, occurring 11 days [2] after a meeting between the two presidents. The Brazilian government aims to protect its most affected sectors while maintaining a strategic partnership with Washington.
“"The country will protect itself, it will make itself be respected."”
The threat of a 25% tariff creates significant volatility for Brazilian exporters and could trigger a cycle of retaliatory trade barriers. By framing the response around 'reciprocity' and 'respect,' Brazil is attempting to leverage specific commodities like ethanol to find a diplomatic off-ramp and avoid a full-scale trade war with the U.S.
