Tariff hike: US 'emergency' in Brazil's political life has to do with rare earths, says Haddad

Finance Minister Fernando Haddad signaled that the United States' "interference" in Brazilian politics is linked to the U.S. government's strategic interest in Brazil's rare earths and critical minerals . He stated that he has been urging President Lula on the need to approve the sector's regulatory framework.

"I have been insisting to President Lula that we need to have the sector's regulatory framework ready," he said in an interview with TV GGN, highlighting the strategic importance of the issue. "The United States doesn't have 10% of the critical minerals that Brazil does," he said.

Critical minerals are those considered essential for strategic sectors such as technology, defense, and the energy transition. They include elements such as lithium, cobalt, nickel, and rare earths, essential for electric vehicle batteries, wind turbines, solar panels, and semiconductors.

Haddad emphasized that the regulatory framework is the responsibility of the Ministry of Mines and Energy (MME) and that it has not yet been formally forwarded to the Treasury for analysis.

This discussion resurfaced amid negotiations on the tariff hike imposed on Brazil by US President Donald Trump , as the United States demonstrated interest in the segment .

"Even this (US) interference in Brazilian politics has to do, in my opinion, with this (rare earths) ," Haddad said, referring to the tariff hike. "They need a sellout government because it's strategic for them. They think Latin America is the United States' backyard," he said.

The minister emphasized that defining the regulatory framework is essential to organizing the sector and valuing scarce resources, which have great geopolitical and economic relevance, as well as the potential to generate jobs, innovation, and sustainable development.

As Estadão reported, the Lula administration is discussing launching a national policy aimed at attracting investment in critical minerals before COP-30 in Belém, Pará. According to Estadão/Broadcast , one of the areas under discussion is the issuance of incentivized debentures in the mining sector.

"We absolutely have every competitive advantage. We have the best wind, the best sun, the third-largest reserves of rare earths and critical minerals. Obviously, this will require partnership, because we don't have all the technology available here, but we need to transform this into added value, quality jobs, and cutting-edge technology," he stated.

Haddad added that Brazil needs to advance in the creation of national technology companies, especially in data processing, since today 60% of Brazilian information is processed outside the country.

"Imagine from a sovereignty standpoint, with the ongoing threats, what this could mean? Tomorrow, someone with an authoritarian bias could want to harm Brazil," he warned.

Tarifaço: Lula and Alckmin act without bravado, but with firmness, says Haddad

The Finance Minister stated that the Brazilian government is acting strategically in the face of trade tariffs imposed by the United States. "Lula and Alckmin are acting without bravado, but firmly regarding US tariffs," he said, emphasizing that the priority is to protect the national economy without resorting to direct confrontation.

The minister highlighted the impact of these tariffs on American consumers, using examples of products exported by Brazil to the United States. "Meat and coffee are more expensive in the US; the same cut of meat that costs R$40 here costs US$120 there."

Haddad emphasized that, although there are challenges in the short term, Brazilian products remain internationally competitive and that other markets remain open to exports.

According to him, Lula and Alckmin's stance reflects a broader strategy to defend the economy, combining protection of productive sectors and expansion of commercial partnerships, while also seeking to reduce the negative effects of high tariffs on consumers and international trade.