Brazilian President Luiz Inácio Lula da Silva has vowed to respond with reciprocal measures if U.S. President Donald Trump implements a 50% tariff on Brazilian exports, as announced on July 9, 2025.
Lula emphasized Brazil’s sovereignty, stating, “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage.
READ ALSO: Video: Brazilian President Lula slams President Trump for threatening BRICS
He indicated that any unilateral tariff increases would be addressed under Brazil’s Economic Reciprocity Law, which allows for countermeasures such as suspending trade or investment agreements.
Trump’s proposed tariff, set to take effect on August 1, 2025, is partly in retaliation for Brazil’s prosecution of former President Jair Bolsonaro, whom Trump called a “highly respected leader” and claimed is facing an “international disgrace” due to a trial over an alleged coup plot following his 2022 election loss.
Trump also cited Brazil’s alleged “attacks on free elections” and “free speech rights,” particularly referencing Brazilian Supreme Court orders to remove content from U.S. social media platforms.
Lula refuted Trump’s claims, noting that the U.S. has a trade surplus with Brazil ($7.4 billion in 2024, per U.S. data) and denied allegations of unfair trade practices or censorship, asserting that Brazil’s regulations on digital platforms target hate speech and misinformation, not free expression.
The Brazilian real fell over 2% against the dollar, and companies like Embraer and Petrobras saw stock market setbacks following the announcement.
The tariff escalation has sparked a diplomatic standoff, with Brazil summoning the U.S. chargé d’affaires to protest Trump’s interference in its judicial process.
Analysts suggest the move could backfire, potentially boosting Lula’s domestic support by framing it as a defense against U.S. imperialism, especially ahead of Brazil’s 2026 election.