Brazilian President Luiz Inácio Lula da Silva hinted that his government may retaliate against President Donald Trump's recent imposition of steel tariffs, signifying a major turn in the escalating trade war.

The South American country is one of the largest sources of U.S. steel imports. Trump earlier this week substantially raised tariffs on steel and aluminum imports to a flat 25% “without exceptions or exemptions”.

I’ve heard they’re going to tax Brazilian steel. If they do that, we’re going to react commercially,” the president said in a radio interview.

President Luiz Inacio Lula da Silva said on Friday that Brazil would react to U.S. President Donald Trump's decision to issue tariffs on steel imports, suggesting his government could file a complaint at the World Trade Organization,

President Luiz Inacio Lula da Silva warned that Brazil might retaliate against U.S. President Donald Trump's increased tariffs on steel imports by filing a complaint with the WTO or taxing U.S. imports.

Brazil's President Luiz Inacio Lula da Silva on Friday vowed "reciprocity" in response to a 25-percent levy on steel imports announced by US President Donald Trump.