Lula Threatens Retaliation in U.S. Steel Tariff Dispute

 Brazilian President Luiz Inácio Lula da Silva has vowed to take reciprocal action following U.S. President Donald Trump’s decision to impose a 25-percent tariff on steel imports. Speaking on Friday, Lula warned that Brazil would retaliate against the move, stating, “There is no doubt, there will be reciprocity.”

As the second-largest exporter of steel to the United States after Canada, Brazil exported 4.08 million tonnes of the metal to the U.S. in 2024. Lula indicated that his administration is considering several responses, including imposing tariffs on U.S. products imported into Brazil or filing a formal complaint with the World Trade Organization (WTO).

Among the American goods potentially targeted by Brazil are industrial machinery, car engines, and aerospace components. Lula emphasized that while Trump has the authority to implement such tariffs, there would inevitably be consequences. “Trump can say what he wants, he’s the president of the United States. But he cannot do what he wants because if he does something that has an impact on other countries, there is always a reaction,” he remarked.

Brazil’s Institutional Relations Minister, Alexandre Padilha, previously stated that the country is not looking for a trade war but would take necessary action if forced to respond. Meanwhile, Trump continues to expand his tariff policies, having signed executive orders earlier in the week implementing a 25-percent tariff on steel and aluminum imports starting March 12.

Additionally, Trump recently announced a broader “reciprocal tariffs” policy, which could impact both allies and competitors. “Whatever countries charge the United States of America, we will charge them,” he declared, signaling a further escalation of global trade tensions.

Lula, who previously expressed a preference for strengthening U.S.-Brazil relations rather than engaging in economic disputes, now finds himself weighing a firm response. Brazil was initially exempted from similar steel tariffs during Trump’s first term, having agreed to import quotas at the time. Whether a similar negotiation will occur remains to be seen.