BRASILIA (Reuters) – Brazil’s Finance Minister Fernando Haddad said on Tuesday now is not the time for Latin America’s largest economy to announce any measures in response to trade tariffs imposed by the U.S.
“The moment is not one for announcing measures,” he said at an event hosted by Bradesco BBI.
Haddad said the tit-for-tat actions between the U.S. and China are unfolding daily, with uncertainty over how the escalation will end.
In this scenario, the worst thing Brazil could do is act without caution, he said.
Brazil has not run a trade surplus with the U.S. since 2008 – a factor that contributed to the country being hit with the minimum 10% tariff, which many see as a potential advantage that could position the country as a winner in the global trade shake-up.
Haddad said the U.S. tariffs replaced hard quota policies, which could actually help Brazil increase exports to the American market.
“Brazil is in a good position overall,” he said. “Relatively speaking, we’re closer to the exit door than our peers.”
On the same day U.S. President Donald Trump unveiled sweeping trade tariffs, Brazil’s Congress passed a bill giving the country a legal basis to retaliate against unilateral trade measures, boosting its ability to respond beyond its usual strategy of challenging actions at the World Trade Organization.
Although leftist President Luiz Inacio Lula da Silva said any response to the new U.S. levies would be based on the bill, Vice-President Geraldo Alckmin said Brazil prefers dialogue and does not plan to trigger the new mechanism for now, opting instead to pursue further talks with U.S. counterparts.
(Reporting by Marcela Ayres; Editing by David Gregorio)
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