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Journalism of Courage
Brazilian President Luiz Inácio Lula da Silva has threatened to impose retaliatory tariffs on US imports if President Donald Trump follows through on his pledge to raise levies by 50%. The move comes in response to Trump’s criticism of Brazil’s criminal trial against former president Jair Bolsonaro.
“If there’s no negotiation, the reciprocity law will be put to work. If he charges 50 from us, we will charge 50 from them,” Lula told TV Record in an interview preview aired Thursday. “Respect is good. I like to offer mine and I like to receive it.”
Brazil passed a reciprocity law earlier this year that allows tariff retaliation. Lula signalled it could be activated if diplomatic efforts fall through.
Trump posted a letter on social media Wednesday warning of import hikes starting August 1, calling Bolsonaro’s trial a “witch hunt.”
The Brazilian trial centers around allegations that Bolsonaro attempted to cling to power after his 2022 electoral defeat. While Bolsonaro and Trump have long shared political affinities, critics in Brazil and the US see the tariff threat as an inappropriate intervention.
Lula has instructed his diplomats to reject and return Trump’s letter if it physically arrives at the presidential palace in Brasília.
A staffer of Brazilian foreign ministry official told AP that ongoing trade negotiations, already strained since Trump’s initial tariffs in April, are now “up in the air.” Trump had invoked the 1977 International Emergency Economic Powers Act, citing the US trade deficit as a crisis, despite the US having a trade surplus with Brazil.
Lula’s administration suspects Trump’s move may be motivated by Brazil’s growing influence in regional blocs like BRICS and its support for alternatives to the US dollar in global transactions.
Trump’s latest use of tariffs may also face legal challenges. In May, the US Court of International Trade ruled that Trump exceeded his authority by declaring an emergency to justify import taxes without congressional approval.
Though US officials argue the tariffs have not hurt the domestic economy, businesses are bracing for long-term impacts. Many firms stockpiled goods ahead of the import hikes. With inventories dwindling, the real test may come when consumers feel the pinch of higher prices.
(With inputs from AP)
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