Brazil may retaliate against EU duties on rolled steel

The Brazilian government said Brazil has asked the European Union for compensation after it imposed import tariffs on steel from major producing countries earlier this month.

The government has also notified the World Trade Organization that it may take its own countermeasures to "balance" trade in line with EU action, according to a joint statement from the Foreign, Economic and Agricultural Ministries.

Brazil is claiming 180 million euros (157.53 million pounds) in compensation.

If the EU waives the compensation, it could open up the possibility for Brazil to set or increase tariffs on European products, including milk powder, said a source, who was not authorized to speak publicly and asked not to be named.

On February 1, the EU announced restrictions on steel imports in response to US President Donald Trump's metals tariffs. Tariffs set limits and quotas for major exporting countries including China, India, Russia and many others.

“The Brazilian government remains open to dialogue with the European Union in order to find the best way to address these problems,” the statement said.