Brazil aims to prioritize negotiations with the U.S. over recent tariffs while expanding trade agreements with other countries. Foreign Trade Secretary Tatiana Prazeres confirmed ongoing dialogues, expressing hope to mitigate the impact of tariffs on Brazilian exports. Amidst concerns, Brazil seeks opportunities arising from trade dynamics, including increases in exports to China and ongoing discussions for agreements with the European Union and others.

Brazil is set to prioritize negotiations with the United States regarding the tariffs imposed by former President Donald Trump. This decision comes as Brazil seeks to broaden its commercial agreements with other countries to mitigate the tariffs’ negative impacts, according to Foreign Trade Secretary Tatiana Prazeres. She stated, “The guidance from the minister and Vice President is to negotiate, negotiate, negotiate,” emphasizing the ongoing dialogue with U.S. authorities.

Since last week, Brazilian imports to the U.S. have incurred a 10% tariff, while steel exports, a crucial commodity for Brazil, have faced a 25% tariff since March. The United States ranks as Brazil’s second-largest trading partner after China, with a trade surplus of $28.6 billion noted in 2024. President Luiz Inácio Lula da Silva has publicly stated that while Brazil does not dismiss retaliation, it remains committed to engaging in dialogues with the U.S.

In the last five weeks, Brazilian officials have engaged in discussions with the Trump administration following the imposition of the 25% steel tariff. Brazil emphasizes its role as a significant supplier of semi-finished steel, crucial to U.S. industry. Officials caution that targeting Brazil could inadvertently bolster Asian competitors backed by China. After the announcement of the 10% tariff on April 2, officials felt a sense of relief, hoping that negotiations had prevented more severe tariffs, yet concerns about the implications of these additional taxes remain.

Brazil’s key exports to the U.S. encompass crude oil, aircraft, coffee, cellulose, and beef, with orange juice exports expected to be significantly impacted due to the U.S.’s dominant market share in that sector. Prazeres noted potential future opportunities arising from the current trade war, referencing previous increases in Brazilian soybean exports to China, although she expressed the risks associated with such dynamics.

Brazilian leaders are also vigilant regarding the potential surge in Asian exports, as changes in trade flows become more pronounced. While negotiating with the U.S., Brazil is keen on enhancing trade ties with other nations and groups, evidenced by recent agreements with Singapore and talks with the European Union. Vice President Alckmin suggested that the trade tensions stemming from Trump’s tariffs might expedite finalizing the Mercosur-EU agreement, which has yet to be ratified by the participating countries.

Brazil is actively engaging in negotiations with the United States over trade tariffs imposed during the Trump administration. While prioritizing these discussions, Brazil is simultaneously seeking to expand its global trade agreements to safeguard its economy. This strategic approach highlights Brazil’s commitment not only to dialogue with powerful trading partners but also to navigate the shifting landscape of global trade relations effectively.

Original Source: www.ifiberone.com

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