Brazil Will Reciprocate If Trump Hikes Tariffs

• Brazilian President Luiz Inacio Lula da Silva said Thursday that if U.S. counterpart Donald Trump hiked tariffs on Brazilian products, he would reciprocate -- but that he would prefer improved relations over a trade war.
• The U.S. ran a trade surplus with Brazil last year at US$253.0Mn, according to the Brazilian government. Despite this, Trump included Brazil among the countries he believes intend to "harm" the U.S., raising the possibility of new tariffs. A Brazilian official had previously expressed hope that the country's longstanding trade deficit with the U.S. which has been unchanged since 2008 would spare it from Trump's tariff threats.
• The U.S. is a large buyer of Brazilian oil, steel products, coffee, aircraft and orange juice, while the South American country buys energy products, pharmaceutical goods and aircraft parts from the U.S., among other products.
• Lula, currently in his third term, said he would prefer to "improve our relationship with the United States" and boost trade ties with Brazil's second-largest trading partner after China. Citing Trump's comments that he plans to take back the Panama Canal or get control of Greenland, Lula said "he just has to respect the sovereignty of other countries."

(Sources: Reuters and NDTV)