Brazil, the second-largest exporter of steel to the United States, announced that it has started talks with the Trump administration in response to the planned increase in tariffs on steel imports, which are set to take effect on March 12.
Trade relations between Brasília and Washington have become tense due to U.S. President Donald Trump’s plan to impose a new 25% tariff on steel and aluminum imports from all U.S. trading partners. This increase is expected to have a significant impact on Brazil, which exported approximately 4.08 million tons of steel to the United States in 2024.
In a phone call on Friday, Brazilian Foreign Minister Mauro Vieira and U.S. Trade Representative Jamison Greer agreed to form a “working group” to address tariff-related issues, according to a statement from the Brazilian Ministry of Foreign Affairs on X. The ministry added that the group could hold its first virtual meeting next week.
This discussion followed a virtual meeting between Brazilian Vice President Geraldo Alckmin, U.S. Secretary of Commerce Howard Lutnick, and Greer, where it was confirmed that the trade balance between the two countries is approximately $80 billion, with a surplus of $200 million in favor of the United States.
Brazil also reiterated that it imports many U.S. steel-manufactured goods, such as industrial machinery, car engines, and aviation parts. Both sides agreed to hold further meetings “in the coming days” to monitor the situation.
Following the U.S. announcement, Brazilian President Lula da Silva warned that his country would respond “in kind” to the tariffs, stressing, “If they impose taxes on Brazilian steel, we will have a trade response, and we will go to the World Trade Organization or impose tariffs on products we import from the United States.”
Source: AFP (Agence France-Presse).