Brazil’s Lula Vows To Mirror Trump’s 50% Tariff Threat In Bold Trade Standoff

Brazil’s President Luiz Inácio Lula da Silva has issued a warning to the United States, stating that Brazil will respond in kind if Donald Trump enforces his proposed 50% import tariffs on Brazilian goods. The proposed trade action, which has stirred significant diplomatic tension, is reportedly linked to Brazil’s ongoing legal proceedings against former President Jair Bolsonaro.

Speaking to Record TV on Thursday, Lula made it clear that Brazil would invoke a recently passed Reciprocity Law if discussions with the U.S. fail to resolve the dispute. “If he charges us 50%, we’ll charge him 50%,” Lula said, reinforcing Brazil’s readiness to mirror any economic pressure placed upon them.

Trump’s tariff threat comes amid Bolsonaro’s criminal trial in Brazil. The former president is accused of attempting to overturn his 2022 electoral defeat, a charge he denies, insisting he’s being politically targeted by the judiciary. In response, Trump has condemned the trial as a “witch-hunt,” suggesting that economic penalties are a justified reaction to what he views as political persecution of a close ally.

Brazil's Strategic Response

Lula criticised Trump's characterisation of Brazil-U.S. trade relations, stating that the claim they are “far from Reciprocal” is misleading. The Brazilian leader noted that his administration is prepared to escalate the matter if necessary, including filing complaints with the World Trade Organization and calling for international scrutiny.

Earlier Thursday, Lula convened his cabinet ministers to strategise a response. His chief of staff’s office announced the formation of a special study group tasked with evaluating Brazil’s next steps should Trump’s tariff threat materialise.

Meanwhile, Trump's broader trade stance has taken centre stage once again. Alongside Brazil, several other nations, such as Bangladesh, South Korea, and Japan, have received letters outlining new tariff structures they could face if negotiations falter. Although the White House had originally planned to implement the increased levies this week, Trump granted a last-minute extension, postponing the rollout to August 1.

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