Brazilian President Warns of Retaliation After Trump Threatens to Impose 50 Percent Tariffs

Trump has cited Brazil’s non-tariff trade barriers and treatment of former President Jair Bolsonaro as the reason behind his tariff hikes.

By Aldgra Fredly The Epoch Times

Brazilian President Luiz Inácio Lula da Silva said on Thursday that his nation may implement retaliatory tariffs if the United States follows through with President Donald Trump’s plan to impose a 50 percent tariff on Brazilian goods on Aug. 1.

Lula said that his government intends to negotiate with the Trump administration over the tariff hikes. Still, he warned that Brazil may enforce its economic reciprocity laws if those talks fall through.

“If there’s no negotiation, the reciprocity law will be put to work. If he charges 50 [percent tariff] from us, we will charge 50 from them,” he told local broadcaster TV Record. “Respect is good. I like to offer mine and I like to receive it.”

In a July 9 letter to his Brazilian counterpart, Trump cited Brazil’s non-tariff trade barriers and treatment of former President Jair Bolsonaro as the reason behind his tariff hikes on the nation’s exports, alleging that Bolsonaro’s trial—related to charges stemming from an alleged plot to overturn the nation’s 2022 election results—was a political “witch hunt.”

Trump described the 50 percent tariff as “far less than what is needed” to create a level playing field between the United States and Brazil.

“There will be no Tariff if Brazil, or companies within your Country, decide to build or manufacture product[s] within the United States,” he wrote.

“Our relationship has been, unfortunately, far from Reciprocal.”

Shortly after, Lula posted a statement on social media platform X dismissing Trump’s claim, alleging that the United States has had “a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years.”

“Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” he stated, warning that Brazil will respond to any unilateral tariff hikes with its trade laws.

Lula also defended his nation’s legal system, saying “the judicial proceedings against those responsible for planning the coup d’état fall exclusively under the jurisdiction of Brazil’s Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions.”

Data from the Office of the U.S. Trade Representative show that the United States recorded a $7.4 billion trade surplus with Brazil in 2024, with total goods trade reaching an estimated $92 billion in the same year.

Brazil, along with the other BRICS nations, may see an additional 10 percent tariff after Trump threatened the group’s members with higher levies on July 8, accusing the group of trying to replace the U.S. dollar as the leading currency for international trade.

BRICS, established in 2009, initially comprised Brazil, Russia, India, and China before welcoming South Africa the following year and further expanding in 2024 to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates.

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