Brazil to Respond to US Tariff Threat with Matching Tariffs

Brazilian President Luiz Inácio Lula da Silva has stated that he is prepared to match any tariffs imposed on Brazil by the United States. This comes after US President Donald Trump threatened to impose a 50% import tax on Brazilian goods starting from 1 August. Trump's decision was influenced by Brazil's treatment of former President Jair Bolsonaro, who is currently facing trial for allegedly trying to stage a coup against Lula after losing to him in the 2022 election.

Trump expressed his support for Bolsonaro, calling him a respected leader worldwide and criticizing the ongoing trial as unnecessary. The relationship between Trump and Bolsonaro has been characterized by their alliance.

President Lula responded strongly to the tariff threat, emphasizing Brazil's sovereignty and independence. He warned that any unilateral tariff increases by the US would be met with reciprocal tariffs on American goods. The potential tariff hike from 10% to 50% could have a significant impact on Brazil, as the US is its second-largest trade partner after China.

Lula also disputed Trump's claim of a trade deficit with Brazil, citing US government data showing a goods trade surplus of $7.4 billion in 2024. Brazil is the US's 15th largest trading partner, with key imports including mineral fuels, aircraft, and machinery, while the US imports gas, petroleum, iron, and coffee from Brazil.