Haddad presents Lula with a tariff contingency plan, but reinforces attempts to negotiate with the US

Finance Minister Fernando Haddad said on Monday 28 that he presented President Lula (PT) with the scenarios and containment measures in light of the 50% tariff hike on Brazilian products promoted by the President of the United States, Donald Trump.

According to Haddad, Brazil remains committed to negotiating with the US government, but is preparing for the tariffs to come into effect on August 1. "We agreed to present him with a contingency plan, including all the options available to Brazil and to him as President of the Republic. The focus remains on negotiations ", he said.

According to the minister, the vice-president and minister of Development, Industry, Commerce and Services (MDIC), Geraldo Alckmin (PSB), is in “permanent contact and permanently available to the American authorities” and that there have been conversations with US representatives.

Earlier, Alckmin reinforced the Brazilian government's efforts to prevent the implementation of the tariffs. According to him, "all efforts this week are focused on resolving the problem," emphasizing that negotiations with Washington remain active "through institutional channels and with due discretion."

Alckmin explained that dialogue with the United States began in March, including a videoconference with U.S. Secretary of Commerce Howard Lutnick. As a result, a bilateral working group was created, which operated until July 4th, a U.S. holiday. In May, the U.S. requested a formal letter with Brazilian proposals, which was sent confidentially—according to the vice president, however, an official response has not yet arrived.