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Brazil Avoids Immediate Retaliation Over U.S. Tariffs
Brazilian President Luiz Inácio Lula da Silva said he is in “no rush” to respond to the newly imposed 50% U.S. tariffs, stressing that negotiation is preferable to confrontation. While Brazil is evaluating options, Lula emphasized that his government does not want an escalation that could harm trade relations.
Reviewing Reciprocity Law
Brazil’s Foreign Trade Secretary confirmed that officials are studying potential measures under the recently passed reciprocity law, which allows Brazil to mirror trade restrictions imposed by other nations. The review, however, is seen as a way to strengthen Brazil’s bargaining position rather than trigger immediate retaliatory tariffs.
Targeted U.S. Tariffs
The U.S. tariffs announced by President Donald Trump apply to several Brazilian goods, including coffee and meat. However, major exports such as orange juice and Embraer aircraft have been excluded, providing some relief to Brazil’s economy. Trade analysts suggest that Brazil will continue talks with Washington before considering any firm countermeasures.
