Brazilian President Luiz Inácio Lula da Silva said Thursday that he will impose retaliatory tariffs on the United States if President Donald Trump follows through on a pledge to boost import taxes

Lula was responding to Wednesday's threat by his US counterpart, Donald Trump, to impose a 50% import tax on Brazilian goods from 1 August. In a letter, Trump cited Brazil's treatment of former President Jair Bolsonaro as a trigger for tariff-hike.

Brazil’s oil exports to the US face potential disruption from threatened tariffs, prompting the country and its state-controlled oil company Petrobras to explore new markets and strategies.