Volkswacht Bodensee - Brazil's Lula threatens 'reciprocity' in US steel tariff row

"There is no doubt, there will be reciprocity" from Brazil -- the second-largest exporter of steel to the United States after Canada, Lula told Radio Clube do Para.

Brazil sent 4.08 million tonnes of the metal to the United States in 2024.

"If they tax Brazilian steel, we will react commercially or file a complaint with the World Trade Organization or tax the products we import from there," the leftist leader added.

Brazil imports a large number of steel-based manufactured products from the United States, including industrial machinery, car engines and parts for its aerospace industry.

"Trump can say what he wants, he's the president of the United States. But he cannot do what he wants because if he does something that has an impact on other countries, there is always a reaction," said Lula.

Earlier this week, Brazil's Institutional Relations Minister Alexandre Padilha said the country had no intention of entering into a trade war with the United States, though Lula had earlier vowed that any US tariffs on his country would be met in kind.

- 'We will charge them' -

Since taking office, Trump has announced a broad range of tariffs targeting some of America's biggest trading partners, claiming they would help tackle unfair practices.

He has signed executive orders for 25 percent tariffs on steel and aluminum imports starting March 12.

On Thursday, Trump also inked plans for "reciprocal tariffs" that could hit allies and competitors alike, in a dramatic escalation of an international trade war economists warn could fuel inflation at home.

"Whatever countries charge the United States of America, we will charge them," Trump said.

Lula had previously said he would prefer to "improve our relationship with the United States" rather than battle over tariffs with Brazil's second-largest trading partner after China.

Trump imposed similar steel tariffs during his first term in office to protect US producers faced with what he complained to be unfair competition.

Brazil was exempted at the time after agreeing to import quotas.

T.Ziegler--VB