Brazilian VP says country's approach to US tariff is not retaliation

Brazil's Vice President Geraldo Alckmin has stated that the country's response to a 25% U.S. tariff imposed on certain Brazilian imports will not be one of retaliation. Speaking to journalists, Alckmin sought to de-escalate tensions following initial statements from the government that suggested initiating reciprocity measures.

"The idea is not retaliation," Alckmin said. "They say 'an eye for an eye,' and what can happen is that both end up blind. Reciprocity means saying: 'Look, we are being subjected to an injustice, and we want to correct it; we have instruments to do so at the appropriate time and in the appropriate manner.'"

Alckmin argued that the U.S. tariff is "unjust and unfounded." He highlighted that Brazil maintains a trade surplus with the United States in both goods and services. Furthermore, he pointed out that Brazil's average tariff on U.S. products is only 3.1%, significantly lower than the 25% tariff imposed by the U.S. For seven of the top ten U.S. export products to Brazil, the tariff is zero.

He also mentioned that, under President Lula da Silva's direction, the government is meeting with affected sectors, which represent approximately 18% of Brazil's exports to the U.S., amounting to about $7.4 billion. The new tariff stems from a year-long U.S. investigation concluding that certain Brazilian practices are "unreasonable" and harm the U.S. economy. These practices include the electronic payment system PIX, anti-corruption measures, intellectual property laws, ethanol market access, and alleged tolerance of illegal deforestation. However, President Trump has exempted around 2,100 Brazilian products, such as meat, coffee, oil, and artwork, from the tariff.