Brazil scrambled to craft a measured but strong response to US President Donald Trump’s surprise tariff hike on Thursday in hopes of shielding key industries, while analysts predicted the tariffs would drive the country closer to China.

Brazilian President Luiz Inácio Lula da Silva's comments raise the risk of a tariffs war erupting between the two countries, similar to what has happened between the U.S. and China.

Lula seeks diplomatic solution but vows reciprocal tariffs if needed Trump links tariffs to Bolsonaro's legal issues Brazilian sectors like aviation and banking feel immediate pressure from tariff threat Brazil's reciprocity law allows countermeasures beyond tariffs BRASILIA,