Brazil’s President Luis Inacio Lula da Silva announced on Thursday that Brazil will impose and lift 50% tariffs on U.S. imports starting August 1.
Lula mentioned that Brazil would approach the World Trade Organization (WTO) and other nations to clarify the situation regarding these tariffs. He pointed out that Trump seemed “disrespectful” for announcing these future tariffs via a letter on his social media platform.
On Wednesday, President Trump stated in a letter to Lula that the U.S. would implement a 50% tariff on certain Brazilian goods, effective Friday, August 1.
Trump referred to a “witch hunt” against former Brazilian president Jair Bolsonaro as a reason for the tariffs, criticizing what he sees as attacks on Brazilian democratic processes and free speech rights. Lula disputed Trump’s claims regarding the U.S.-Brazil trade balance and rejected the notion that Brazil is politically persecuting anyone. He emphasized that he would activate Brazil’s Interrelations Act to impose similar tariffs on American goods.
During a local news interview on Thursday evening, Lula called Trump’s letter “unacceptable,” suggesting that Trump is “misinformed” about trade statistics. Lula expressed a willingness to negotiate but insisted on “respect for Brazil’s decisions,” warning that if an agreement isn’t reached before August 1, Brazil would retaliate with its own tariffs.
“It’s crucial to consider some things that governments just can’t accept. Interference in another country’s sovereignty is one of them, especially regarding judicial matters,” Lula stated.
He continued, “It’s inappropriate for President Trump to send a letter that suggests ending a so-called witch hunt. That’s simply unacceptable. We have our justice system here that ensures fairness.” Lula further added he doesn’t rush into decision-making but reiterated that if no resolution is reached, Brazil would begin taxing imports reciprocally starting August 1.
“Brazil does not seek conflict. We wish to negotiate and want our decisions respected,” he noted, adding that extreme tariffs could lead to very high rates. “What Brazil cannot tolerate is interference in our domestic issues,” he added.
Lula contended that if claims are being made about a trade deficit with Brazil, they are false, as the U.S. enjoys a trade surplus with Brazil.
When asked how Brazil’s export sector would respond to U.S. tariffs, Lula emphasized they are not merely “taxes on Brazil.” He plans to gather business leaders exporting to the U.S. to discuss their situations.
“We strive to negotiate. Brazil prefers to find common ground rather than engage in litigation, but we will invoke reciprocity if negotiations fail,” Lula confirmed, highlighting the importance of collaboration between the business community and the government.
A reporter inquired why Lula’s administration has not reached out directly to the U.S. since Trump took office, considering that the U.S. is Brazil’s second-largest trading partner. Lula replied that he hasn’t communicated with Trump aside from congratulating him on his election and anticipated meeting him at a G7 in Canada, where Trump left early.
“When I need to speak with Trump, like I did with past presidents, I have no issue doing so. However, there should be a purpose behind such calls,” Lula remarked. “For instance, it would have been more diplomatic for him to inform us about his intended measures rather than publish it online.”
“His approach is rude. I have no obligation to accept this kind of behavior,” he noted, adding that while politeness is appreciated, there must be mutual respect in dealings.
Lula firmly stated, “There’s no reason for me to talk to Trump” and that he is not given ample grounds for communication. Yet, he remains open to reaching out if necessary, even if it might come with risks of receiving a dismissive response.
“I would take that chance without hesitation. But for now, it seems there’s nothing to discuss,” Lula concluded.
