Government decides not to retaliate tariffs imposed by Trump to the steel industry and discuss negotiation strategies

Finance Minister Fernando Haddad met on Wednesday (12) with Marco Paulo Lopes, executive president of the Steel Brazil Institute, to discuss the recent tariffs imposed by the United States about Brazilian steel and aluminum. During the meeting, the minister stated that, for now, the Brazilian government will not take retaliatory measures. The economic team is currently evaluating the implications of tariffs and discussing the alternative steel industry to deal with the situation.

Haddad pointed out that the government will not adopt a uniform approach to the issue of steel import and export. For imports, a unilateral defense will be needed, while for exports, the strategy will involve direct negotiations with the United States. “The steel sector calls for action on both imports and exports, and of course the strategy cannot be the same in one case and the other. In the case of exports, it involves a negotiation, and the case of imports involves a more unilateral defense, ”said the minister.

According to Haddad, the Brazilian strategy will be focused on negotiation and defense, aligned with the guidelines of President Luiz Inacio Lula da Silva (PT). “We are studying industry proposals, which has all the legitimacy to suggest solutions. They are bringing very consistent ideas on how we can negotiate, ”said the minister. He also stressed that Brazilian steel trade is balanced and rejected the United States’s view that Brazil would only be reselling steel, clarifying that Brazilian exports have a strategic participation in the international market.

Brazil is the second largest steel supplier for the US, with exports of 4.1 million tons in 2024, according to the US Department of Commerce. The Brazilian government is expected to officially position itself soon about the taxation of 25% imposed by the US government, following the analysis of ongoing proposals and discussions.