Brazilian President Luiz Inacio Lula da Silva said on Thursday that his government would reciprocate if U.S. President Donald Trump decides to impose tariffs on Latin America's largest economy, and called for mutual respect.

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 Luiz Inacio Lula da Silva said Thursday that if US counterpart Donald Trump hiked tariffs on Brazilian products, he would reciprocate -- but that he would prefer improved relations over a trade war.

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.