Brazil's Diplomatic Tightrope: Balancing Trade with the US and Iran Amid Trump’s Tariffs

Brazil is navigating a complex diplomatic landscape following the Trump administration's imposition of a 25% tariff on countries trading with Iran. This secondary tariff targets partners of Iran, including Brazil, which maintains trade relations involving corn, soy, sugar, and meal exports to Iran, and imports of urea. However, Brazil's trade volume with the US is roughly 13 times larger than with Iran, complicating its diplomatic ties. Analyst Fernanda Magnotta highlights Brazil's role as a "double agent," seeking to condemn violence in Iran while avoiding antagonizing its crucial trading partner, the US. The Brazilian government's official statement reflects this balancing act by criticizing violence against protesters without explicitly condemning Tehran and reaffirming the principle of non-interference in sovereign affairs—an implicit message towards US policies. While immediate economic impacts on Brazil may be limited, long-term challenges persist in how both the US and Iran will perceive Brazil's position amidst rising tensions. Meanwhile, Brazil also continues its energy cooperation with Cuba, focusing on technical support and regulatory reforms rather than direct fuel supplies, responding to Cuba's critical energy crisis compounded by US sanctions and reduced Venezuelan oil flows. Though these efforts are less central, they form part of Brazil’s broader regional diplomatic strategy amid growing US pressure in Latin America.