In an exclusive interview with BandNews, Finance Minister Fernando Haddad said on Monday that the 50% rate imposed by the United States on Brazilian products was “politicized” and used as a tool against the government. In an interview with the Bandeirantes group, the minister criticized what he considers political interference in business relations and defended Brazilian sovereignty.
According to Haddad, the Brazilian government is still awaiting confirmation of a meeting with US Treasury Secretary Wally Adeyemo to discuss the issue. “Since last week, they have expressed the interest of perhaps this week marking this meeting,” he said. It is expected that the meeting, still without a definite date, will take place in the coming days, even in a virtual way.
He recalled that a previous meeting with the US government had already taken place in May, California, when the 10%rate was announced. Since then, the increase to 50% has raised tensions between the two countries. “The situation has changed very dramatically,” said the minister, pointing out that the American decision began to reflect political interests.
“The issue was politicized by the opposition,” Haddad said, referring to internal groups in Brazil that, according to him, would be working against national interests. The minister criticized the fact that Brazil was targeted by the fare disproportionately compared to countries that, in his words, “are not even democratic.”
Haddad pointed out that “international trade cannot be used for electoral purposes” and that Brazil will not accept to be treated as a colony. He defended the separation between foreign policy and internal disputes and said that the country must be respected as a solid democracy, with independent powers.
“It makes no sense for Brazil to be punished for having institutions working,” said the minister. For him, the United States must understand that Brazil is “a sovereign country” and that its internal decisions should not interfere with commercial agreements.
Still during the interview, the minister argued that the United States has already accounted for 25% of Brazilian exports, but today account for only 12%. He considers this reduction a sign of healthy diversification of the economy, but also an opportunity to “reconnect the two countries on the most balanced bases.”
Haddad also cited strategic sectors in which the two countries could act in partnership, such as renewable energy, technology and critical minerals. He mentioned Pix as an example of Brazilian innovation that arouses international interest, including the United States.
Asked about the immediate impacts of tariffs, the minister admitted that sectors such as small and medium -sized exporting companies can be affected and mentioned that the government has already prepared a contingency plan with credit measures and emergency support.
Haddad stated that the government’s contingency plan will consider the specific situation of each sector reached by US tariffs. According to him, many entrepreneurs have reported that they will be able to redirect their exports to other markets, especially in cases of commodities such as meat and coffee. “I heard from several of them that there is some ease in this redirect,” said the minister.
However, Haddad pointed out that the government’s central concern has more vulnerable sectors-those that produce tailor for the US market as certain industrial segments. “These will have more difficulty finding new destinations for their products,” he warned. He cited Embraer as an example, which was initially on the list of charges. “If she had entered the 50%rate, there would be no way to operate. She buys a lot there and sells a lot there. Fortunately, they retreated.”
The minister said the response plan will involve punctual measures, adapted to the nature of each problem. “It will be a tailored policy. It is not a unique policy, because the situations are very different between the sectors.” He cited the case of the governor of Ceará, who requested a provisional measure to enable public fish purchases as a way to protect local producers in the face of US market loss.
“This measure can help not only fish, but also fruits and other foodstuffs,” he said. However, Haddad acknowledged that not all sectors can be supported by government purchases. “There are companies that will have to invest in new equipment, change the focus of production. In such cases, the exit can be a subsidized credit line.”
Despite the internal planning, the minister again emphasized that there is still room to reverse rates through dialogue. “The negotiation has not even begun. When we sit at the table, we will show that there is no economic rationality to this extent,” he said. Haddad has shown confidence that by presenting the impacts to both Brazil and the US, it will be possible to build a solution. “There are many opportunities for mutual benefit that are being waged for nothing.”
He stressed that the Brazilian government is not acting for convenience. “We have been on this agenda since the beginning of the Lula administration. It’s not something that has come now.” According to Haddad, Brazil has repeatedly defended a more active US presence in South America. “We told them,” You are withdrawing from the region, and this makes room for China and Europe to occupy. “
The minister also pointed out that Brazilian companies have been expanding their investments in the United States, and that this exchange of capital should be valued as part of a strategic partnership. “This American retraction here in the region needs to be reviewed. We have been saying that for over two years.”
For the minister, the imposition of tariffs shows a lack of attunement between the partnership discourse and the practical actions of the United States. “If it is to have a strategic relationship, it cannot be just rhetorical,” he said. He added that it is necessary to “align gestures with words”, and that the current scenario “gives a contradictory message to the world.”
Haddad also made a point of stressing that the Brazilian government is not “heading internally” on how to react. He cited meetings with the Ministries of Development, Foreign Affairs, Industry and Itamaraty, in which it was clear that “there is consensus” about the need for a firm but diplomatic response. “We are not acting on improvisation.”
He also stated that President Lula follows the theme closely and has been endorsed the negotiations. “The president knows the importance of this issue, and any step we take is with his knowledge and support,” he said. The minister stressed that the conduct of foreign policy remains with Itamaraty, but that the Ministry of Finance “plays a fundamental role in demonstrating the economic impacts of the measure.”
When asked about the possibility of resorting to the World Trade Organization (WTO), Haddad avoided anticipating any formal action, but said that “all tools are at the table.” According to him, Brazil has a history of resolving commercial conflicts through dialogue, but does not rule out any way. “Let’s go as far as it is necessary to defend our industry and our worker.”
The minister also criticized the Brazilian opposition, which, according to him, has used the situation to wear out the government, including with external support. “They are celebrating a measure that hits Brazilian companies and Brazilian workers,” he said. For Haddad, “this is not opposition, it is sabotage.”
