Brazil Downplays Impact of US Tariffs Amidst Diplomatic Tensions

Brazil has sought to mitigate concerns over the impact of proposed U.S. tariffs as President Donald Trump announced his intention to impose a 50% tariff on imports from the South American nation. Both countries' leaders signal a tentative willingness to negotiate a solution.

President Trump, addressing reporters, expressed a possible future conversation with Brazilian President Luiz Inacio Lula da Silva. Lula, in response, stated a desire to maintain diplomatic channels but emphasized Brazil's readiness for like-for-like retaliation should the tariffs be enacted.

Brazil predicts minimal influence on its economy, projecting a 2.5% growth despite the threat of tariffs. While some manufacturing sectors may face challenges, Brazil's diversified trade relations, particularly with China, could cushion the impact, officials contend.

(With inputs from agencies.)