Luis Inacio Lula da Silva, Brazil’s left-wing president, is behaving similarly to his predecessor, Jair Bolsonaro, according to Finance Minister Fernando Haddad. During a customs discussion with the U.S., Haddad noted that Lula wouldn’t just “wave his tail” or express affection towards Washington.
In an interview with CNN Brasil on Tuesday evening, Haddad mentioned that a significant tariff—50% on Brazilian goods entering the U.S.—is set to take effect on Friday, August 1st. A delegation led by Vice President Gerald Alcumin is currently in the U.S. aiming to negotiate better tariff terms.
Last week, Lula criticized Bolsonaro during a government event, remarking that he was ready to negotiate with President Donald Trump. However, Trump responded that he wouldn’t engage unless Lula reached out himself.
A report from a Brazilian outlet indicated that the communication channels with the White House are currently “closed,” making it challenging for Brazil’s Presidential Palace to connect with the Trump administration.
During his conversation with CNN Brasil, Haddad stressed that Lula will not emulate Bolsonaro’s approach, which he referred to as a “witch hunt.” He noted that Trump’s past actions contribute to the current tariff situation, emphasizing the need for structured negotiations to prevent Lula from facing the same pitfalls that Ukrainian President Volodymyr Zelensky encountered at the White House.
Haddad recounted an awkward incident with Trump in February, where Lula was effectively dismissed from their meeting for speaking out of turn during a photo opportunity.
“It’s important to have a protocol for this,” he stated, reinforcing that Brazil should not adopt a submissive stance by trying to ingratiate itself with the U.S.
He continued, “It’s about two sovereign nations engaging, and it’s vital to figure out how Brazil will navigate this relationship without compromising its commitment.” Haddad mentioned that Brazil must prepare to deal with potential impacts from the tariffs, expressing confidence in their negotiation abilities.
According to him, Brazil is formulating a contingency plan to mitigate the economic effects of the impending tariffs, including measures for worker protection similar to those used during the pandemic.
He expressed uncertainty about the U.S. government’s plans, noting that even high-ranking officials are not clear on future decisions. However, he remained optimistic about Brazil’s preparedness for negotiations, ensuring that both companies and workers would be taken care of.
Additionally, Haddad commented on the situation involving Bolsonaro, who has faced accusations from Brazil’s Supreme Federal Court (STF) regarding undermining democracy. Trump pointed to these developments as indicative of issues with free speech and elections in Brazil.
The Finance Minister asserted that the U.S. cannot retaliate against Brazil based on the STF’s decisions and argued logically against the idea of punitive measures based on internal judicial matters.
Though President Lula hinted at potential retaliatory tariffs should the U.S. proceed with its proposed measures, Haddad clarified that “physical retaliation” is not being considered as a strategy.
According to him, the Trump administration may be counterproductive by imposing tariffs, potentially increasing food prices for Americans and disrupting economic productivity. He reiterated the need for careful consideration in discussions around retaliatory measures to protect the Brazilian populace.
