Padilha states that Brazil will not go to business war with Trump

The Minister of Institutional Relations, Alexandre Padilhasaid on Tuesday (11) that the Brazilian government does not intend to conflict with the United States after the decision of the president Donald Trump to impose a 25% rate on steel and aluminum imports.

“Brazil does not encourage and will not enter any trade war. Always favorable to strengthen, free and more free trade, ”said Padilha during an event with mayors in Brasilia.

“What President Lula (PT) has said very clearly, other countries too: trade war is not good for anyone. One of the important advances for the world in recent years was exactly we build instruments, dialogue with countries, ”he said.

The minister pointed out that the Lula government follows the situation with caution and should seek dialogue as a way to minimize the impacts of the measure, which should come into force on March 12. According to him, there is not yet an official position on possible reciprocity measures, but the intention is not to retaliate the US.

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Impact of measure on Brazilian exporters

Brazil is among the countries most affected by the decision, alongside Canada and Mexico. In 2024, the country was the second largest steel supplier for the US, behind Canada only, according to US Trade Department data. In 2023, the United States were 18% of Brazilian cast iron, iron and steel exports.

This is not the first time Trump adopts commercial barriers against the Brazilian steel industry. During his first term, he implemented similar tariffs, but ended up retreating after negotiations.

Effect on the economy and next steps

Ruition can importantly affect Brazilian steel, a sector that depends strongly on the US market. The Brazilian government evaluates strategies to mitigate impacts, including bilateral negotiations and possible counterparts.

Trump’s decision is aligned with its national industry protection policy, one of its main campaign flags. It is expected that affected countries seek to reverse the measure through negotiations, as did Canada and Mexico in the past.