Haddad rules out immediate retaliation against the US, but calls for dialogue and nods to the WTO

Finance Minister Fernando Haddad denied on Saturday (19) that the Brazilian government is considering economic retaliation against the United States after the imposition of a 50% tariff on Brazilian products, announced by former President Donald Trump. The measure, announced on July 9, generated strong political repercussions and diplomatic tension between the two countries.

In a statement posted on social media, Haddad stated that "the adoption of stricter dividend control measures is not under consideration." The statement seeks to quell speculation about a possible immediate response from Brazil.

"Finance Minister Fernando Haddad denies that the Brazilian government is considering adopting stricter control measures on dividends as a form of retaliation against the taxes adopted by the United States and reaffirms that this possibility is not under consideration," the official statement said.

Trump justified the new tariff with overtly political motivations. In an interview at the White House, the Republican stated that he decided on the sanction because he considered the legal situation of former President Jair Bolsonaro, who is being charged in the Supreme Federal Court (STF) with attempted coup d'état, "a disgrace." "I know the former president. He fought hard for the Brazilian people... what they're doing to him is terrible," Trump declared.

In a letter to President Lula, Trump raised his voice, calling Bolsonaro's trial "an international disgrace" and labeling the proceedings a "Witch Hunt that must end IMMEDIATELY!" The US president accused Brazil of carrying out "insidious attacks" on free elections and violating the freedom of expression of American citizens.

As part of the diplomatic strategy, a new letter was sent to the White House this week, signed by Vice President Geraldo Alckmin and Foreign Minister Mauro Vieira. The document expresses "indignation" over the tariff and demands a response to a previous communication, dated May, which has not yet received an official response.

In the legal field, the Brazilian government is considering resorting to the recently enacted Economic Reciprocity Law, which allows for the adoption of equivalent measures against countries that impose unilateral sanctions. Lula stated that Brazil may use this instrument "when necessary" and that he will seek international cooperation with other countries affected by Trump's tariffs to take action at the World Trade Organization (WTO).

"From then on, if there is no solution, we will enter into reciprocity starting August 1st, when he starts taxing Brazil," said the president.