Brazil's Lula 'No Rush' to Retaliate Against US Tariffs, Focus on Negotiations

Brazil's President Luiz Inacio Lula da Silva said he's in "no rush" to retaliate against US tariffs, despite his Foreign Ministry starting to analyze a local reciprocity law. Lula reiterated his administration's openness to negotiations, while Foreign Trade Secretary Tatiana Prazeres said the reciprocity law aims to help Brazil come to an understanding with the US. The US raised tariffs on Brazilian goods to 50% from 10%, citing unfair trade and accusing Brazil of a "witch hunt" against former President Jair Bolsonaro.

Brazil's President Luiz Inacio Lula da Silva has indicated that his government is not in a hurry to retaliate against the United States' 50% tariffs on Brazilian goods. Instead, Lula reiterated his administration's openness to negotiations, stating that he wants to avoid a trade war. The Brazilian Foreign Ministry has initiated a process to analyze a local reciprocity law, which could potentially be used as a countermeasure [2].

The US imposed the tariffs on Brazilian goods, citing unfair trade practices and accusing Brazil of a "witch hunt" against former President Jair Bolsonaro, who is currently on trial for allegedly scheming to overturn the 2022 election results [1]. The tariffs, which raised duties from 10% to 50%, have been met with criticism from Brazilian officials, who have expressed a lack of room to negotiate with US counterparts.

Lula's Foreign Trade Secretary, Tatiana Prazeres, stated that the reciprocity law aims to help Brazil come to an understanding with the US. The law, passed by Congress earlier this year, establishes a legal framework for Brazil to respond to potential unilateral trade measures targeting its goods and services, including countermeasures such as tariffs [3].

The reciprocity law process is expected to take around 30 days, with the Chamber of Foreign Commerce (CAMEX) compiling its findings. If the law is approved, a government working group will decide which areas Brazil should target in its measures against the US [3].

Despite the initiation of the reciprocity law process, Lula has emphasized that Brazil is open to negotiations with the US. He stated that he does not want a trade war and is willing to discuss the tariffs with the US administration. However, Brazil will not sacrifice its sovereignty in the process [1].

The US has a trade surplus with Brazil, with its exports to the South American country outstripping its imports. The total trade in goods and services with Brazil amounted to nearly $127.6bn last year, an increase over 2023 [1].

The Brazilian steelmaker Gerdau SA is also monitoring the US trade talks, with its Chief Executive Officer Gustavo Werneck indicating that the company's $600 million special steel project in Mexico could be resumed depending on the outcome of the talks [4].

References:
[1] https://www.aljazeera.com/news/2025/8/29/i-am-in-no-rush-brazils-lula-weighs-countermeasures-to-trumps-tariffs
[2] https://news.bloomberglaw.com/international-trade/lula-authorizes-retaliation-process-against-trumps-tariffs
[3] https://www.reuters.com/world/americas/brazil-starts-formal-process-assess-us-tariff-retaliation-2025-08-28/
[4] https://www.bloomberg.com/news/articles/2025-08-28/brazil-s-gerdau-links-600-million-mexico-mill-to-us-trade-talks