Brazil has already deepened ties with China amid escalating tensions with the U.S.

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US-Brazil relations are going to be further tested after the latest Trump tariff, expected to impact key Brazilian exports to the U.S.:Trump hits Brazil with a 50% tariffBrazil slammed by Trump's 50% tariff, real down more than 2%Brazil is increasingly aligning its economic strategy with China. In November 2024, Brazilian President Luiz Inácio Lula da Silva and Chinese President Xi Jinping signed 37 bilateral agreements, enhancing cooperation in sectors such as agriculture, infrastructure, energy, and technology. This move solidifies China’s position as Brazil’s largest trading partner, with bilateral trade reaching approximately $160 billion in 2024. Brazil has expressed a preference for negotiation over retaliation, aiming to resolve trade disputes through dialogue while simultaneously strengthening ties with other global partners. The contrasting approaches from China and the U.S. highlight Brazil's strategic pivot towards diversified international partnerships amid shifting global trade dynamics. This article was written by Eamonn Sheridan at www.forexlive.com.