Brazil’s Lula Threatens Trade Retaliation After Trump Imposes 50% Tariffs
President Lula invokes Brazil’s reciprocity law and warns of suspending trade and IP agreements with the U.S. following Trump's punitive tariffs.
Watan-On Wednesday, Brazilian President Luiz Inácio Lula da Silva stated that the 50% tariffs announced by U.S. President Donald Trump would trigger Brazil’s economic reciprocity law, which allows the suspension of trade, investment, and intellectual property agreements with countries that harm Brazil’s competitiveness.
In a strongly worded statement, Lula declared:“Brazil is a sovereign nation with independent institutions, and it will not tolerate being disrespected by any party.”
The Brazilian president defended the integrity of his country’s judicial system, pointing out that the United States has enjoyed a trade surplus of over $410 billion in its dealings with Brazil over the past fifteen years.
Trump had announced the new tariffs on Brazilian imports, citing the “unfair treatment” of former Brazilian President Jair Bolsonaro, who is currently on trial for attempting to overturn the results of the 2022 election.
According to analysts, Trump’s decision appears to be politically motivated, not purely economic, and possibly driven by personal sympathies toward Bolsonaro, a right-wing ally.
This development threatens to escalate into a broader trade dispute between the two largest economies in the Americas, with potential ripple effects on bilateral cooperation and regional diplomacy.
