Brazil's Strategic Response to U.S. Tariff Threats

Brazil's Finance Minister, Fernando Haddad, expressed the country's determination to continue negotiations with the U.S., despite the looming threat of 50% tariffs on Brazilian goods. Brazil plans to reallocate exports if necessary and support affected sectors without increasing primary spending.

Brazil continues to negotiate with the U.S. amidst President Trump's impending 50% tariffs on Brazilian goods. Finance Minister Fernando Haddad remains hopeful for a deal, despite the August 1 deadline.

Haddad, in an interview with CBN, emphasized Brazil's contingency plans to redirect exports if tariffs are imposed, a move that may take time. U.S. imports large amounts of Brazil's exports, including oil, steel, and aircraft.

The Brazilian government plans targeted support for sectors hit by tariffs while avoiding increased spending. President Lula da Silva threatened reciprocal tariffs, but Haddad prefers not to retaliate against U.S. firms in Brazil.

(With inputs from agencies.)