Brazilian President Luiz Inacio Lula da Silva said he wanted to find a diplomatic solution to U.S. President Donald Trump¡¯s threat of 50% tariffs on Brazilian exports, but vowed to reciprocate like-for-like if they take effect on Aug. 1.

¡°We¡¯ll first try to negotiate, but if there¡¯s no negotiation, the law of reciprocity will be put into practice,¡± Lula said in an interview to Record TV, citing a law the Brazil¡¯s Congress recently passed giving the president powers to retaliate against trade barriers. ¡°If they¡¯re going to charge us 50, we¡¯ll charge them 50.¡±

The president is unlikely to announce any retaliatory measures until the tariffs are implemented, said a Brazilian diplomat who requested anonymity to describe internal government debates. ¡°We have until August 1,¡± the source added.