BRASÍLIA, March 8, 2025 (BSS/AFP) - Brazil and the United States are engaged in talks on import tariffs announced by President Donald Trump, just days before they are due to take effect, the government of President Luiz Inacio Lula da Silva said Friday.

Ties between the countries have been strained since Trump said he would impose a 25-percent tariff on steel and aluminum imports from March 12, prompting Lula to vow reciprocity.

Brazil is the second-largest exporter or steel to the United States after Canada, sending it 4.08 million tonnes of the metal in 2024.

Brazil's Foreign Minister Mauro Vieira spoke to US Trade Representative Jamieson Greer by telephone Friday, and the pair agreed to create a working group "to address tariff-related issues," the foreign ministry said on X.

This came a day after Vice President Geraldo Alckmin held a video conference with Greer and US Commerce Secretary Howard Lutnick, and agreed on further talks "in the coming days," according to Brazil's commerce ministry.

Last month, Lula reacted to Trump's announcement by saying: "If they tax Brazilian steel, we will respond commercially, file complaints with the World Trade Organization, or impose tariffs on the products we import from them."

Brazil imports a large number of steel-based manufactured products from the United States, including industrial machinery, car engines and parts for its aerospace industry.

"Trump can say what he wants, he's the president of the United States. But he cannot do what he wants because if he does something that has an impact on other countries, there is always a reaction," said Brazil's leftist leader.

Since taking office, Trump has announced a broad range of tariffs targeting some of America's biggest trading partners, claiming they would help tackle unfair practices.

Trump imposed similar steel tariffs during his first term in office to protect US producers faced with what he complained to be unfair competition.

Brazil was exempted at the time after agreeing to import quotas.