President Luiz Inacio Lula da Silva said Brazil is prepared to respond if Donald Trump places new tariffs on the country’s products, although he hopes to improve trade relations with the US instead.

Brazilian President Lula has indicated that Brazil would retaliate if U.S. President Donald Trump imposes tariffs. Despite a trade surplus for the U.S., tensions are rising as Trump labels Brazil harmful to the U.

"It is very simple: if he taxes Brazilian products, there will be reciprocity," Lula told a press conference in Brasilia. The United States runs a trade surplus with Brazil, which according to Brazil's government hit $253 million last year.