Brazil Finance Minister Durigan, on US tariffs, says reciprocity must be evaluated in order to be used correctly; there are no grounds on which to speak about retaliation

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Brazil's Deputy Finance Minister Dourigan emphasized that the reciprocity principle regarding U.S. tariff policies must be carefully evaluated, signaling that immediate retaliatory measures are not being considered. This statement reduces the likelihood of a full-scale trade war between the two nations. Investors should closely monitor the progress of Brazil's trade negotiations with the U.S. and any changes in the level of its tariff response.

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The Brazilian government's cautious stance suggests a preference for diplomatic resolution over escalation, which provides a buffer for market volatility. By refraining from immediate retaliation, Brazil aims to maintain stable trade relations while assessing the long-term impact of U.S. economic policies. The market will likely focus on whether this strategic patience leads to favorable bilateral agreements.

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