Brazilian President Luiz Inacio Lula da Silva has stated that, if the US imposes tariffs on his nation, he’ll reply in sort.
Talking at a information convention within the capital Brasilia, on Thursday, Lula stated his nation seeks a relationship primarily based on mutual respect. His feedback got here in response to US President Donald Trump’s risk of heightened tariffs.
“It is vitally easy: If he taxes Brazilian merchandise, there might be reciprocity,” Lula advised reporters.
“Trump was elected to run the US, and I used to be elected to run Brazil. I’ll respect the US and need Trump to respect Brazil. That’s all.”
The feedback are the most recent sign that Trump’s efforts could spark a commerce warfare with US allies.
Lula’s stance additionally presents a mannequin for the way different Latin American countries would possibly reply to Trump’s protectionist insurance policies. Trump has touted tariffs as a mechanism to spice up home business, in addition to to power worldwide rivals to accede to calls for starting from manufacturing to migration.
Earlier this week, Trump threatened large tariffs towards Colombia when President Gustavo Petro initially refused to permit a US army flight bearing undocumented immigrants to land.
Petro objected to the US remedy of the immigrants, a few of whom had been reportedly handcuffed.
After the 2 leaders exchanged tariff threats, Petro backed down, permitting future flights to proceed, regardless of implying a comparison between Trump and “white slavers”.
However Trump has proceeded to dangle the prospect of tariffs towards different nations for the reason that diplomatic spat.
On Thursday, for example, he advised reporters that he deliberate to make good on a promise to impose 25 p.c tariffs on the neighbouring nations of Canada and Mexico, two of the US’s largest buying and selling companions.
“We don’t want the merchandise that they’ve,” Trump stated.
Trump has indicated the tariffs would incentivise Mexico and Canada to tighten their border safety and stem the move of medication, migrants and asylum seekers. Prior to now, Trump has additionally threatened to hold out military strikes within Mexico to take care of drug-trafficking cartels that transfer fentanyl over the border.
Specialists tie the mounting shadow of tariffs to Trump’s said want to pursue an “America First” international coverage, placing US pursuits above all else.
His remarks at his second inauguration on January 20 emphasised that platform. Not solely did he tease impending tariffs “to complement our residents”, however he additionally laid out an expansionist imaginative and prescient for the US’s future, together with by means of the seizure of the Panama Canal.
These threats, nonetheless, haven’t been effectively obtained in Latin America, the place an extended historical past of US interventions and meddling stays resonant.
“I’ve ruled Brazil whereas the US had Republican and Democratic presidents, and our relationship has at all times been between two sovereign nations,” stated Lula, who started his third non-consecutive time period in workplace in 2023 after defeating Trump ally Jair Bolsonaro.
The US has a commerce deficit with Brazil, from which it buys merchandise corresponding to espresso, oil, metal, plane and orange juice.
Brazil, in the meantime, largely purchases US items like power merchandise, pharmaceutical items and plane components. In line with Brazil’s Foreign Trade Secretariat, the nation exported $337bn in items to the US in 2024, and imported $262.5bn.
However specialists say commerce deficits aren’t essentially an indication of an unhealthy financial relationship: They’re affected by components corresponding to client demand and forex values.
There are additionally fears {that a} US-sparked commerce warfare may empower different financial rivals to step in.
China, for instance, has expanded its economic ties with South America lately, changing into the first buying and selling associate for many nations within the area.
