Brazil vows to match US tariffs after Trump threatens 50% levy

The tariffs, which Trump aimed at China, could affect imports from Brazil

Brazil warned it could impose retaliatory tariffs on US goods if the Trump administration goes ahead with threats to impose levies on all products from China.

Brazil's Vice President Hamilton Mourao told reporters that Brazil will "match" any US tariff measures and that "we cannot just sit and watch."

If the US imposes a 50% tariff on Chinese goods, Brazil would do the same to US goods, Mourao added.

China isn't the only trade war target for Trump

The move comes after US President Donald Trump threatened to impose a 10% tariff on $300 billion of Chinese goods, escalating the trade war between the world's two largest economies.

Trump has also targeted metals imports from Brazil and other countries, imposing tariffs of 25% on steel and 10% on aluminum.

However, Brazil's President Jair Bolsonaro said he held "friendly" talks with Trump recently and that the two countries have "never been closer."

What's next

Brazil, the world's largest soybean producer, is heavily integrated into global commodity markets and economies could be hurt by any escalation of the US-China trade war.

The Brazilian government is set to unveil details of its retaliation plan in the coming days, officials said.