Finance Minister Fernando Haddad argued this Wednesday (12) that Brazil should prioritize the ongoing negotiations with the United States rather than resorting to retaliation over the 25% tariff on steel and aluminum.

According to him, the country must show the Americans a "diagnostic mistake" regarding tariffs. "President Lula said we need to remain very calm at this moment. We have negotiated before under conditions far worse than this one," he stated.

According to the minister, representatives of the steel industry have requested action on both imports—due to concerns over the global spread of Chinese steel—and Brazilian exports, which are being affected by the U.S. tariff increase.

On Wednesday morning, the Finance Minister met with Marco Polo de Mello Lopes, president of the Instituto Aço Brasil, and other industry representatives.

Private-sector business leaders also presented the Finance Ministry with proposals for protecting the national industry.

Brazil is one of the leading exporters of semi-finished steel products, such as slabs and billets, and will also be impacted.

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