Haddad says Lula government is working on bilateral deal with US to avoid Trump tariffs

Faced with the commercial uncertainty caused by new threats from US President Donald Trump, Finance Minister Fernando Haddad adopted a cautious tone on Tuesday 8th. According to the minister, who spoke to journalists at the entrance to the Ministry's headquarters, the Republican's statements after the BRICS meeting require careful evaluation.

“There is a degree of uncertainty in the statements that need to be evaluated over time. Deadlines are being extended, there are many comings and goings, we have to wait,” said Haddad.

The minister then confirmed that a team from the Lula government (PT) is holding direct negotiations with the US government to discuss a possible bilateral agreement.

“President Lula’s team is sitting at the table with the American government discussing our bilateral agreement. So, we are focusing on the technical work they are doing, because if we consider everything that is being said , we will get lost in a discourse that may not lead to the best result for both countries,” said Haddad.

On this topic, the Finance Minister also defended the trade partnerships established by Brazil. “Given the scale of the Brazilian economy, we cannot do without these partnerships [with the European Union and bilateral agreements in the Middle East], we cannot become an appendage of a bloc,” he added.

IOF

During the conversation, Haddad was asked about the decision by Supreme Court Justice Alexandre de Moraes to suspend both the government decrees on the Financial Transactions Tax (IOF) and the Congressional decision that overturned them. He chose to repeat the arguments presented by the government in the lawsuit.

“We have reached absurd levels: 800 billion reais that are favoring certain economic groups in the national business community,” said Haddad. “Every time you favor an economic group, you compromise fiscal goals, the interest rate goes up, and it harms the entire country. What is the point?” he asked.

Haddad had previously said that Moraes' decision was "excellent." Now, according to him, the documentation is being prepared to be presented to the process. According to the minister, the government's idea is to prevent tax evasion .