Brazil eyes rare earths leverage in US tariff talks
Brazil holds significant leverage in trade disputes with Washington through its vast rare-earth deposits, the second-largest globally after China’s. These minerals power electric cars, smartphones, military equipment, and renewable energy systems, where Beijing controls most worldwide production and processing.
Mines and Energy Minister Alexandre Silveira sees alignment between Brazilian resources and American investment interests. President Luiz Inacio Lula da Silva said on Friday he would discuss critical minerals with Trump at a potential weekend meeting in Kuala Lumpur.
Washington imposed 50 percent tariffs on select Brazilian goods over former president Jair Bolsonaro’s conviction, which Trump called unjust. China announced rare earth export limits this month while America secured access to Australian reserves.
American firms lead rare earth investment in Brazil but focus on extraction rather than advanced manufacturing. Some experts suggest Chinese partnerships would better develop Brazilian capacity given their technical expertise and existing trade relationships.
