Brazilian Finance Minister Fernando Haddad has confirmed that Brazil and the United States are in talks to reach an agreement on tariffs, following recent U.S. trade policy changes.

Speaking on Sunday, Haddad said he discussed the issue with U.S. Treasury Secretary Scott Bessent, representing Brazil and the wider South American region. He argued that imposing tariffs on countries with trade deficits with the U.S., like many in South America, is counterproductive.

“The most important thing at this moment is to say that we are at a table negotiating the terms of an understanding,” Haddad stated. He praised Secretary Bessent’s openness to dialogue, calling their conversation “very fruitful.”

According to reports, these discussions follow U.S. President Donald Trump’s April 2 announcement of broad tariff measures. Brazil was included under a 10% tariff on most imports into the U.S.