Brazilian President Luiz Inácio Lula da Silva said Thursday that his government has not been successful in trying to negotiate the 50% tariff on Brazilian imports that U.S. President Donald Trump has threatened to impose.

Brazil’s president, Luiz Inacio Lula da Silva, had just returned to his office from a meeting with Indonesia’s prime minister when the reports began blaring on TV.

Chemical products companies in Brazil, which exported $2.4 billion to the U.S. last year, face a slew of contract cancellations as President Donald Trump has threatened a new 50% tariff on the South American nation's exports from August 1.