Brazil Prepares Legal Battle over U.S. Tariffs Amid Rising Trade Tensions

Brazil's Finance Minister Fernando Haddad announced the country's potential legal action against U.S. tariffs on Brazilian goods. The tariffs were imposed by President Trump, citing dissatisfaction with Brazilian politics and trade practices. Haddad criticized the U.S. and warned about consequences of 'weaponizing' the dollar in international trade.

Brazil faces a brewing trade conflict with the United States, as Finance Minister Fernando Haddad signaled a possible court challenge to steep tariffs imposed by the Trump administration. These duties target Brazilian imports, allegedly in response to unfair trade practices and political tensions involving former President Jair Bolsonaro.

Speaking to local media outlet UOL, Haddad emphasized Brazil's refusal to resort to lobbying and its readiness to contest the tariffs legally. This reaction follows Trump's decision to instate harsh tariffs, referencing a 'witch hunt' against Bolsonaro, who is embroiled in legal proceedings over a failed coup attempt.

Expressing Brazil's outrage, Haddad highlighted the persistent trade deficits between the two nations and the potential destabilizing effects these U.S. policies could have on global confidence. He warned against the U.S. 'weaponizing' the dollar, which could eventually undermine its status as a reserve currency, advocating for countries to explore local currency trade options.

(With inputs from agencies.)