The move went down as a serious escalation in Brazil’s Trump tariff battle as the President of Brazil, Luiz Inacio Lula De Silva, fiercely condemned the threats by the President of the US, Donald Trump, to impose tariffs. The trade dispute was triggered by the threat issued by Trump, who threatened to institute excessive 50% tariffs on Brazilian products, associating the commercial punishment with the judicial case No. 1 against former President Jair Bolsonaro.
During the exclusive interview with CNN, Lula gave a very strict answer to aggressive trade policies presented by Trump, saying: “The US President was not elected to be an emperor of the world”. This is an example of the Brazil Lula Trump saga, whereby there have been increasing tensions between the two leading economies in matters regarding trade and the independence of the courts.
Trump’s Tariff Threats Target Brazil Over Bolsonaro Trial
This Brazil Trump tariff conflict began when Trump published a letter on Truth Social threatening to impose 50% duties beginning August 1. As Trump explained in a direct tie to what he referred to as a witch hunt against Bolsonaro, his Brazilian political friend, who stands trial on charges of trying to overthrow Lula following his loss in last year’s elections in the country.
Lula categorically denied a relationship between the negotiation of trade and the independent judiciary of Brazil. The Brazilian judiciary branch of power is an independent one. Lula said that the president does not have any influence in any way. He stressed that Bolsonaro is not charged on personal grounds, but he was trying to arrange a coup.
The Brazil Lula Trump debate was further entangled when Lula proposed that if Trump had done the same things in Brazil as during January 6th, he too would be tried and risked arrest under Brazilian law.
Brazil Promises Retaliatory Tariffs in Trade War Response
Brazil is the first country that pledge reciprocity moves in the Brazil-Trump tariff fight because other countries have experienced threats of tariffs imposed by Trump. In response to Trump, Lula said Brazil would retaliate by erecting equal tariffs in case he carries on with the threats.
Brazil will never take anything that is imposed on it. “We welcome negotiation and not imposition”, Lula said, showing that Brazil is ready to fight back in this trade standoff.
The financial interest is high in the Brazil Lula Trump Scandal. It is indeed true that the US enjoys a trade surplus of 6.8 billion dollars with Brazil, and thus America exports to Brazil more than it imports. The leading US exports are aircraft, fuels, and machinery only to name but a few, yet all these would be a casualty of retaliatory Brazilian tariffs.
