Finance Minister Haddad Signals Lengthy Negotiations Amid Tariff Disputes
Brazilian Finance Minister Fernando Haddad expressed on Thursday that prolonged negotiations are expected between Brazil and the United States, particularly focusing on ethanol and sugar tariffs. These talks come in the wake of U.S. President’s plans to adjust import tariffs, which will be detailed early April.
Haddad highlighted that the U.S. would likely bring ethanol into the discussions, while Brazil would counter with sugar issues. “As they are waging war with the entire world, they will not make an exception for Brazil. That certainly will not happen,” Haddad commented during an interview with GloboNews TV.
This stance is in response to the White House's recent criticisms of Brazil’s ethanol tariffs, which they label as unfair trade practices. In reaction, Brazil’s Energy and Mining Minister Alexandre Silveira has called any potential U.S. tariffs on Brazilian ethanol "unreasonable," emphasizing that both countries have historically handled ethanol and sugar trade negotiations together.
Brazil is a leading sugar producer globally and primarily uses sugarcane for its ethanol production, contrasting the U.S.'s corn-based ethanol. The discrepancy in production methods and tariffs has been a point of contention, with Brazilian officials arguing that U.S. sugar tariffs exceed those imposed by Brazil on ethanol imports.
In the midst of these tariff disputes, Haddad mentioned that the trade of services with the U.S., where Brazil is a major exporter, would also be a critical discussion point. With the U.S. preparing its trade approach, Brazil is methodically reviewing its import and export agenda to ensure readiness for reciprocal negotiations.
“Our approach will be reciprocity, not retaliation,” Haddad stated, emphasizing a strategic and calm response to the unfolding tariff discussions.