Brazilian President Luiz Inácio Lula da Silva signaled on Wednesday that his government is prepared to respond to any new U.S. tariffs with reciprocal measures, but emphasized that diplomacy remains his top priority.

Speaking to reporters following the Community of Latin American and Caribbean States (CELAC) summit in Honduras, Lula made it clear that while Brazil will defend its economic interests, it will exhaust all avenues for dialogue before resorting to retaliation.

“We will use every word for negotiation that is in the dictionary,” Lula said, reaffirming his administration’s preference for peaceful resolution over confrontation. “Once we’ve explored every possibility for dialogue, then Brazil will make the appropriate decisions.”

Lula’s remarks come amid a global uptick in trade tensions following a series of new tariff announcements by the United States. While he did not specify which sectors or goods might be targeted in a potential response, Lula struck a tone of balanced firmness—asserting Brazil’s right to defend itself while signaling openness to negotiation.

Brazil and the United States share deep economic ties, and any escalation in tariffs could have widespread implications across multiple industries. Trade analysts say Lula’s comments reflect a pragmatic strategy aimed at maintaining economic stability while asserting Brazil’s sovereignty on the global stage.

As global markets monitor the situation closely, much will depend on whether Washington and Brasília can reach a diplomatic solution before a broader trade conflict unfolds.