In a bold move on the global trade stage, U.S. President Donald Trump made waves by slapping hefty tariffs on seven countries and extending this aggressive policy to Brazil with a 50% import duty. Previously, Trump targeted Algeria, Iraq, Libya, Sri Lanka (30%), Brunei, Moldova (25%), and the Philippines (20%), effective from August 1.
Mere hours after Trump's announcement, Brazilian President Luiz Inácio Lula da Silva issued a firm warning of economic retaliation. Silva declared that Brazil would counter any unilateral import duty hikes with equivalent actions.
This declaration echoed after Trump's extensive 50% tariff on Brazilian goods, justified by the alleged mistreatment of former President Jair Bolsonaro, currently on trial for coup plotting.
In an official statement, President Lula's office emphasized that Brazil would respond based on its Economic Reciprocity Law, raising fear of an intensified trade war between the two nations.
Trump justified the tariff by highlighting Brazil's supposed unfair trade practices and the controversial treatment of Bolsonaro, arguing that Brazil had not played fair in trade deals with the U.S.
In the wake of Trump's imposing import duties, President Lula issued a stern retort, affirming Brazil's readiness to apply reciprocal tariffs under national law if provoked further.
Source: aajtak
President Lula Speaks Out on X
Responding via social media platform X, Lula emphasized Brazil's sovereignty and rejection of external interference, remarking, 'Brazil is a sovereign nation with autonomous institutions, and we will not tolerate external meddling.'
Lula further elaborated that legal proceedings against former President Bolsonaro are an internal affair, free from outside pressure or influence, affirming the impartiality and independence of Brazil's judiciary system.
The Brazilian President also clarified that freedom of expression in Brazil does not equate to tolerating violence or hate speech, emphasizing the nation's zero tolerance for discriminatory practices, including online hate speech, racism, child abuse, and other offenses, urging compliance with national laws for all operating businesses.
Rebutting Trump’s Allegations
Countering Trump's claims of Brazilian interference in U.S. elections and attacks on free speech, Lula described such allegations as baseless distortions of facts.
He challenged the narrative of an American trade deficit, asserting, "In the past 15 years, U.S.-Brazil trade has favored the U.S. by $410 billion, substantiating American governmental data."
Impact on South Korea and Japan
Earlier, Trump imposed a 25% duty on all imports from South Korea and Japan, declaring these long-overdue measures vital to correcting U.S. trade imbalances.
Over 20 Countries Targeted
Extending his tariff policy's reach, Trump included Myanmar, Laos, South Africa, Kazakhstan, Malaysia, Tunisia, Indonesia, Bosnia and Herzegovina, Bangladesh, Serbia, Cambodia, and Thailand, asserting a need to counter year-long antagonistic tariff and non-tariff policies against the U.S.
Offer for U.S. Companies
Trump offered exemptions to international companies relocating production to the U.S. but cautioned further tariff increases for those implementing retaliatory duties against America.
Explicit Threat to BRICS
Espousing open disdain for BRICS, Trump threatened a 10% tariff on its members, which include India, Russia, China, South Africa, and Brazil, accusing them of undermining the U.S. dollar's global standing.
He warned, 'BRICS must bear significant consequences if they attempt to depose the dollar as the global standard. Wise leadership can retain dollar supremacy, but repeating past leadership mistakes could prove costly.'
