President Luiz Inácio Lula da Silva is preparing a response today to his U.S. counterpart, Donald Trump, who announced that a 50% tariff will be imposed on Brazilian products starting August 1.
Lula held an urgent meeting with advisors and ministers at the Planalto Palace, the seat of Brazil’s executive branch in the capital.
"Brazil is a sovereign nation with independent institutions that will not accept being controlled by anyone," the head of state stated in a social media post.
Treasury Minister Fernando Haddad was already with the president when news of the tariff broke. Also summoned were the Minister of Development, Industry, Trade, and Services and Vice President Geraldo Alckmin, as well as Foreign Minister Mauro Vieira.
Further participating in the discussions were Chief of Staff Rui Costa and Communications Secretary Sidônio Palmeira.
According to advisors, Trump’s measure will be challenged by Brazil, and Lula had previously hinted at possible retaliations if tariff hikes harmed the country.
In response to the developments, the former union leader declared that unilateral tariff increases would be met "in light of Brazil’s economic reciprocity law."
This provision allows the country to adopt equivalent measures against nations that unilaterally raise tariffs. In practice, it means Brazil can impose similar duties or restrictions in response, following national regulations and international agreements, such as those of the World Trade Organization, to defend its trade interests.
The newspaper O Globo reported that while the economic effects remain uncertain, officials see potential political dividends in the confrontation with Trump.
The offensive, which could hurt Brazilian businesses, is seen as creating a challenge for the political right while giving Lula a platform.
Reports indicate that the Republican leader sent a letter to Lula announcing the new tariff, set to take effect on August 1.
The decision was formalized in the letter, where Trump also criticized Brazil’s Supreme Federal Court and its treatment of former President Jair Bolsonaro, who faces accusations of attempting a coup.
In the text, Trump called Bolsonaro’s trial an "international embarrassment" and described the case as a "witch hunt" that, in his view, should end immediately.
He also accused the Supreme Court of issuing what he called "secret and illegal" censorship orders against U.S.-based digital platforms, which is believed to have partly motivated the tariff measure. (Cuba Si)
