Brazil’s President Lula da Silva Reacts to US Trade Tariffs
Brazil’s Stance on US Trade Tariffs
Brazil’s President Luiz Inacio Lula da Silva has spoken out against the US President Donald Trump’s trade tariffs, stating that his country "cannot stand still" in response to the policy. As the second-largest exporter of steel to the United States after Canada, shipping four million tonnes of the metal in 2024, Brazil is heavily affected by the 25 percent levy on steel imports announced by Trump in February.
Reciprocal Measures
In February, Lula vowed "reciprocity" in response to the US tariffs, but after the policy came into effect on March 12, the Brazilian finance minister said Lula had decided not to retaliate and instead called for "calm". However, on the last day of his state visit to Japan, Lula revealed that he plans to take a different approach.
"We are going to take the approach that we think will be good for Brazil," he said. "We have two options: one is to resort to the World Trade Organization, which we are going to do, and the other is to overtax the American products that we import — that is, to put the law of reciprocity into practice."
Trade Deal with Japan
Lula also spoke about the potential for a trade deal between South America’s Mercosur bloc and Japan, which he expects to begin in the second half of the year. This agreement, he believes, will help boost trade between the two economies in the face of growing protectionism under Trump.
Brazil’s Supreme Court
In addition to his comments on trade, Lula also reacted to Brazil’s Supreme Court ordering far-right former president Jair Bolsonaro to stand trial on charges of plotting a coup. Lula expressed his hope that justice will be served, stating, "I only hope that justice is served. If he (Bolsonaro) is found innocent in the proceedings, let him be declared innocent. If he is guilty, let him be punished. He has no way of proving that he is innocent. Everyone knows what he did."
Conclusion
Brazil’s stance on the US trade tariffs is clear: Lula’s administration will take a firm approach to protect the country’s economic interests. With plans to explore the World Trade Organization and potentially impose reciprocal tariffs on US imports, Brazil is determined to stand up for itself in the face of protectionism. As the country looks to boost trade with Japan and other economies, the future of Brazil’s economic relations with the US remains uncertain.
Frequently Asked Questions
Q: What is Brazil’s stance on the US trade tariffs?
A: Brazil’s President Lula da Silva has stated that his country "cannot stand still" in response to the US tariffs and plans to take a firm approach to protect its economic interests.
Q: What are Brazil’s plans for retaliating against the US tariffs?
A: Brazil will explore the World Trade Organization and potentially impose reciprocal tariffs on US imports.
Q: What is the significance of the trade deal between Mercosur and Japan?
A: The trade deal is expected to boost trade between the two economies and help them navigate the challenges of growing protectionism under Trump.