Trump Imposes 50% Tariff on Brazil. Lula Warns of Retaliation. BRICS Nations Also Targeted. Risk of Trade War Increases.
Trump Tariff: Former US President Donald Trump has announced a 50 percent import tariff on products coming from Brazil. Previously, he had imposed heavy tariffs on 7 other countries as well. In response to this decision, Brazilian President Luiz Inácio Lula da Silva has bly reacted and warned the United States of an economic response. Lula has made it clear that Brazil will not accept any external pressure or interference. Following this dispute, the risk of a trade war between the US and Brazil is escalating.
Trump Imposes 50 Percent Import Tariff on Brazil
US President Donald Trump has decided to impose a direct 50 percent tariff on products imported from Brazil. Prior to this, he had announced heavy import duties on countries like Algeria, Iraq, Libya, Sri Lanka (30 percent), Brunei, Moldova (25 percent), and the Philippines (20 percent). These new tariffs will come into effect from August 1st.
Trump's decision is being viewed as a move to protect American trade interests and as a political message. He has stated that this step was taken in protest against the treatment of former President Jair Bolsonaro in Brazil. Bolsonaro is accused of plotting a coup and is facing trial.
President Lula's Sharp Response
Within hours of the announcement, Brazilian President Luiz Inácio Lula da Silva gave a sharp response to the US. He said that if the US adopts a unilateral trade policy with Brazil, then Brazil would also impose retaliatory tariffs.
Lula stated in his official statement, "If any country unilaterally increases tariffs, Brazil will respond under its Reciprocity Law."
Lula's Strong Reaction on Social Media
Brazilian President Lula da Silva also reacted on the social media platform X. He wrote that Brazil is an independent and sovereign nation and will not accept any external pressure or interference.
He further wrote, "Our justice system is independent and will not be influenced by any foreign government. The ongoing cases against Bolsonaro are entirely under the jurisdiction of the Brazilian judiciary."
Trump's Allegations Called False
Trump has also accused Brazil of engaging in unfair trade practices with the US and attacking electoral interference and freedom of expression in America. Responding to these allegations, Lula said that all of Trump's accusations are false and misleading.
Lula said, "The US has benefited from $410 billion in trade relations with Brazil over the past 15 years. This figure is clear from US government reports themselves. Yet if the US wants to harm us, we will not remain silent."
Trump's Open Threat to BRICS
As part of his tariff policy expansion, Trump has also targeted the BRICS group. He said that BRICS is working against the US and its aim is to weaken the global position of the dollar. He warned that a 10 percent import tariff will be imposed on all countries included in BRICS soon.
BRICS includes India, Russia, China, South Africa, and Brazil. Trump said, "If these countries try to replace the dollar with another currency, they will have to pay a heavy price. If the US loses its currency's position, it will be a threat to national security and global stability."
Tariffs on South Korea and Japan as well
The impact of Trump's tariff policy is not limited to Brazil. Previously, he had imposed a 25 percent import tariff on all products coming from South Korea and Japan. Trump said that these decisions are necessary to balance the long-standing trade deficits of the United States.
More Than 20 Countries are Targeted
More than 20 countries have been affected by Trump's tariff policy so far. These include Myanmar, Laos, South Africa, Kazakhstan, Malaysia, Tunisia, Indonesia, Bosnia and Herzegovina, Bangladesh, Serbia, Cambodia, and Thailand.
Trump clarified that countries that have been creating tariffs and non-tariff barriers against the US for years will now be answered. He said, "Trade deficits are a major threat to our economy and security. Now is the time for America to protect its interests."
