Brazil’s President Luiz Inacio Lula da Silva has indicated that his government will not immediately impose retaliatory tariffs on the United States.

Instead, on Friday, he repeated his call for his US counterpart, Donald Trump, to join him in trade negotiations.

Recommended Stories

list of 3 itemsend of list

Currently, Brazil faces 50 percent taxes on all its exports to the US, the highest current tariff rate of any country except India.

While Brazil has yet to respond in kind, on Thursday, its Chamber of Foreign Commerce (CAMEX) began exploring whether countermeasures would apply under a local law.

“This is a process that takes a bit of time,” Lula said in Friday’s interview with Radio Itatiaia. “We have to tell the United States that we also have actions we can take against them. But I am in no rush. What I want is to negotiate.”

Since August 1, Brazil has faced the steep US tariffs, as part of Trump’s pressure campaign to end a trial against his fellow far-right leader, Jair Bolsonaro.

Bolsonaro, who led Brazil as president from 2019 to 2023, has faced multiple legal inquiries since leaving office, including for allegedly falsifying his COVID-19 vaccine records and using government resources to undermine confidence in the election system.

But his greatest legal hurdle is his current trial for allegedly scheming to overturn the results of the 2022 election, which he narrowly lost to Lula.

A verdict is expected in the case in early September. Bolsonaro, meanwhile, has denied wrongdoing and called the proceedings political persecution.

Advertisement

Trump has echoed those accusations. In a July 9 letter to Lula, he accused the Brazilian government of censoring right-wing voices and said he would impose the 50 percent tariff as a result.

“This trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!” Trump wrote.

The letter also included a warning against any retaliatory measures: “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 50% that we charge.”

The Trump administration has also imposed sanctions and stripped visas from Brazilian officials in response to Bolsonaro’s trial.

Lula, however, has framed Trump’s actions as an effort to interfere in Brazil’s legal process.

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

The US has since agreed to a consultation process with the international body. Should that fail, a World Trade Organization panel would likely weigh Brazil’s case.

On Thursday, Brazil’s Foreign Ministry, with authorisation from Lula, also requested that CAMEX explore whether a reciprocity law passed by Congress could be used to implement retaliatory measures against the US.

CAMEX will have 30 days to compile its findings about how the law might be applied to the US tariffs.

“I took this measure because we have to move forward with the process,” Lula told Radio Itatiaia on Friday. “If we proceed as required by law, it will take a year.”

Lula has repeatedly said that Trump officials have refused to negotiate with his administration to lower the hefty export taxes.

According to the Office of the US Trade Representative, the US has a trade surplus with Brazil, with its exports to the South American country outstripping its imports. The total trade in goods and services with Brazil amounted to nearly $127.6bn last year, an increase over 2023.

In his radio interview on Friday, Lula repeated his desire to talk with Trump, emphasising he does not want a trade war. But, he added, Brazil will not sacrifice its sovereignty.

“For now, Brazil is open to negotiations with the US,” Lula said. “What’s different is that Brazil doesn’t need to bow its head to the US.”