Brazil-US Talks Scrapped Over Tariff Clash, Says Finance Minister
By Global Leaders Insights Team | Aug 12, 2025
Brazil’s Finance Minister Fernando Haddad revealed that a planned virtual meeting with U.S. Treasury Secretary Scott Bessent, set for Wednesday, was called off, dealing a blow to efforts to ease tensions over steep U.S. tariffs on Brazilian goods.
Haddad shared his disappointment, noting that no new date has been confirmed despite Brazil’s push to reschedule. The cancellation comes after the Trump administration slapped 50% tariffs on various Brazilian exports, a move tied to the ongoing trial of former Brazilian President Jair Bolsonaro, a close ally of Donald Trump.
Bolsonaro faces charges over an alleged coup attempt following his 2022 election defeat. Adding to the friction, Congressman Eduardo Bolsonaro, his son, has been in the U.S. since March, pushing for sanctions against those involved in his father’s case.
- Brazil-US Tariff Talks Cancelled, Haddad Blames Political Tensions
- 50% US Tariffs Hit Brazilian Exports as Key Trade Meeting Scrapped
- Haddad Eyes Southeast Asia, EU Deal After US Talks Collapse
Haddad expressed frustration, calling out “pseudo-Brazilians” in Washington for working against their own country’s interests. With talks stalled, he stressed the need for Brazil to look elsewhere for trade opportunities, pointing to Southeast Asia as a promising market. He also called for faster progress on a trade deal between South America’s Mercosur bloc and the European Union.
To soften the tariffs’ blow, which affects around 10,000 Brazilian companies, the government is preparing an executive order. This will include reforms to the Export Guarantee Fund (FGE), along with support for government purchasing and credit access to help struggling businesses. Haddad emphasized that no single fix will suffice, and a broad strategy is essential to tackle the economic fallout.
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The scrapped meeting highlights the growing strain in Brazil-U.S. relations, leaving exporters in a tough spot. As Brazil scrambles to find new markets and shore up its trade defenses, the dispute underscores the tricky balance of global trade amid political disputes.
