Investing.com -- Brazilian Finance Minister Fernando Haddad announced on Sunday that Brazil and the United States are in active discussions regarding the terms of a tariff agreement. The discussions are aimed at addressing the tariffs imposed on South American nations due to their trade deficits with the U.S.

Haddad, speaking in Los Angeles, stated that he had a conversation with U.S. Treasury Secretary Scott Bessent on behalf of the region, asserting that the imposition of tariffs on South America did not make sense given the existing trade deficits. He traveled to Los Angeles to discuss potential investments in data centers.

Haddad emphasized the importance of these ongoing negotiations. "The most important thing at this moment is to say that we are at a table negotiating the terms of an understanding," he said.

He also expressed optimism about the U.S. Treasury Secretary’s approach to the negotiations. "I believe that the Secretary’s attitude was very fruitful and demonstrated a very important openness to dialog," Haddad added.

Currently, most U.S. imports from Brazil are subject to a 10% tariff.

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