‘I am in no rush’: Brazil’s Lula weighs countermeasures to Trump’s tariffs

Brazil presently faces 50 percent tariffs connected galore of its US exports, arsenic a effect of its prosecution of Jair Bolsonaro.

Brazil’s President Luiz Inacio Lula da Silva has indicated that his authorities volition not instantly enforce retaliatory tariffs connected the United States.

Instead, connected Friday, helium repeated his telephone for his US counterpart, Donald Trump, to articulation him successful commercialized negotiations.

Currently, Brazil faces 50 percent taxes connected each its exports to the US, the highest existent tariff complaint of immoderate state but India.

While Brazil has yet to respond successful kind, connected Thursday, its Chamber of Foreign Commerce (CAMEX) began exploring whether countermeasures would use nether a section law.

“This is simply a process that takes a spot of time,” Lula said successful Friday’s interrogation with Radio Itatiaia. “We person to archer the United States that we besides person actions we tin instrumentality against them. But I americium successful nary rush. What I privation is to negotiate.”

Since August 1, Brazil has faced the steep US tariffs, arsenic portion of Trump’s pressure campaign to extremity a proceedings against his chap far-right leader, Jair Bolsonaro.

Bolsonaro, who led Brazil arsenic president from 2019 to 2023, has faced aggregate ineligible inquiries since leaving office, including for allegedly falsifying his COVID-19 vaccine records and utilizing authorities resources to undermine assurance successful the predetermination system.

But his top ineligible hurdle is his existent proceedings for allegedly scheming to overturn the results of the 2022 election, which helium narrowly mislaid to Lula.

A verdict is expected successful the lawsuit successful aboriginal September. Bolsonaro, meanwhile, has denied wrongdoing and called the proceedings governmental persecution.

Trump has echoed those accusations. In a July 9 letter to Lula, helium accused the Brazilian authorities of censoring right-wing voices and said helium would enforce the 50 percent tariff arsenic a result.

“This proceedings should not beryllium taking place. It is simply a Witch Hunt that should extremity IMMEDIATELY!” Trump wrote.

The missive besides included a informing against immoderate retaliatory measures: “If for immoderate crushed you determine to rise your Tariffs, then, immoderate the fig you take to rise them by, volition beryllium added onto the 50% that we charge.”

The Trump medication has besides imposed sanctions and stripped visas from Brazilian officials successful effect to Bolsonaro’s trial.

Lula, however, has framed Trump’s actions arsenic an effort to interfere successful Brazil’s ineligible process.

On August 11, Lula’s authorities filed a ailment with the World Trade Organization, claiming the US violated planetary agreements by imposing the 50 percent tariff.

The US has since agreed to a consultation process with the planetary body. Should that fail, a World Trade Organization sheet would apt measurement Brazil’s case.

On Thursday, Brazil’s Foreign Ministry, with authorisation from Lula, besides requested that CAMEX research whether a reciprocity instrumentality passed by Congress could beryllium utilized to instrumentality retaliatory measures against the US.

CAMEX volition person 30 days to compile its findings astir however the instrumentality mightiness beryllium applied to the US tariffs.

“I took this measurement due to the fact that we person to determination guardant with the process,” Lula told Radio Itatiaia connected Friday. “If we proceed arsenic required by law, it volition instrumentality a year.”

Lula has repeatedly said that Trump officials person refused to negociate with his medication to little the hefty export taxes.

According to the Office of the US Trade Representative, the US has a commercialized surplus with Brazil, with its exports to the South American state outstripping its imports. The full commercialized successful goods and services with Brazil amounted to astir $127.6bn past year, an summation implicit 2023.

In his vigor interrogation connected Friday, Lula repeated his tendency to speech with Trump, emphasising helium does not privation a commercialized war. But, helium added, Brazil volition not sacrifice its sovereignty.

“For now, Brazil is unfastened to negotiations with the US,” Lula said. “What’s antithetic is that Brazil doesn’t request to bow its caput to the US.”

Source:

Al Jazeera and quality agencies