Brazil finance minister Fernando Haddad speaks in Brasilia

Brazil finance minister Fernando Haddad speaks in Brasilia

Brazil's Finance Minister Fernando Haddad delivered a message of sovereignty and partnership with the United States during a press conference in Brasilia on July 2, 2025. Haddad emphasized that Brazil is committed to maintaining its economic independence and seeks balanced international relationships.

Haddad expects to speak with U.S. officials this week, expressing confidence that negotiations will continue until an agreement is reached. He highlighted potential areas for cooperation, particularly in the production of efficient batteries, leveraging Brazil's critical minerals and rare earths. "We can make cooperation agreements with the U.S. to produce more efficient batteries," Haddad stated, emphasizing that Brazil does not want to be a satellite of any economic bloc.

In response to potential U.S. tariff increases, Haddad noted that products like beef and coffee could be redirected to other markets, though he expressed concern about the impacts on other sectors. He mentioned that a contingency plan for steeper U.S. tariffs would have a "small primary impact."

On the domestic economic front, Haddad offered an optimistic outlook, stating that inflation is falling and interest rates are expected to follow suit.

Haddad's statements come amidst ongoing tension between Brazil and the United States due to recent U.S. tariffs. Brazil's government has set aside plans for direct retaliation, focusing instead on relief packages for industries hit hardest by the levies [1]. Instead, Brazil is studying potential responses that would affect U.S. companies, but sees them as a last resort if negotiations fail.

The Brazilian government has also signaled its intention to file a formal complaint at the World Trade Organization over the tariffs, despite the stalled dispute settlement system [1].

References:
[1] https://www.usnews.com/news/top-news/articles/2025-08-04/brazil-chooses-local-relief-over-retaliation-for-us-tariffs-sources-say
[2] https://www.investing.com/news/politics-news/brazils-haddad-says-country-wants-partnership-with-us-but-will-defend-sovereignty-93CH-4168659