The harsh response of the Lula administration of Trump’s trade war against Brazil

The Brazilian government released on Wednesday, 9, an official note in response to the letter of US President Donald Trump, which announced the imposition of a 50% rate on all products exported by Brazil from August 1. The measure was classified by the Planalto Palace as unilateral and reply based on national legislation.

In the demonstration, the Brazilian government stated that the country “is a sovereign country with independent institutions that will not accept being protected by anyone.” The text also mentions that “the judicial process against those who have planned the coup d’état is of jurisdiction only of the Brazilian justice and, therefore, is not subject to any kind of interference or threat that has the independence of national institutions.”

The reaction occurred after Trump sent a letter to President Luiz Inacio Lula da Silva (PT), in which the US leader, in addition to communicating the new tariff, also came out in defense of former President Jair Bolsonaro (PL), currently defendant in the Supreme Court (STF) in the attempt at attempted coup after the 2022 elections.

Rejection of interference and reciprocity alert

In the same statement, the Brazilian government rejected the criticism of the US President and indicated that eventual unilateral commercial sanctions will be responded based on the economic reciprocity law. “Any unilateral tariff raise measure will be answered in the light of the Brazilian Economic Reciprocity Law,” says the text.

Planalto also addressed Trump’s accusation of an alleged US commercial deficit of Brazil. According to the statement, this claim is incorrect: “Information is false, in the case of the commercial relationship between Brazil and the United States, about the alleged US deficit. The statistics of the United States government itself prove a surplus of this country in the trade of goods and services with the order of $ 410 billion over the last 15 years.”

Regulation of digital platforms and freedom of expression

The Brazilian government also used the note to respond indirectly to the US President’s statements on freedom of expression and digital content. Trump stated that the treatment given to Jair Bolsonaro, including investigations into his performance in social networks, would represent a violation of freedoms.

In the answer, Brazil stated that “in the context of digital platforms, Brazilian society rejects content of hatred, racism, child pornography, blows, fraud, discourses against human rights and democratic freedom.” The text adds that “freedom of expression is not confused with aggression or violent practices” and stresses that “all national and foreign companies are subjected to Brazilian law.”

The statement reinforces the government’s position regarding the regulation of digital platforms in the country, which has been the subject of legislative and judicial debate in recent months.

Diplomacy based on constitutional principles

The official note released by the Planalto Palace ends with a reaffirmation of the principles of Brazilian foreign policy. “Sovereignty, respect and uncompromising defense of the interests of the Brazilian people are the values that guide our relationship with the world,” says the text.

The letter sent by Trump occurs at a time of instability in the bilateral relationship. In addition to the new rate on Brazilian products, the United States government has adopted other protectionist measures regarding business partners, in line with the economic policy defended by the US president since its first term.

International context and next steps

The Brazilian government’s response is part of a context of growing tension between the two countries, especially after the White House may adopt a more aggressive trade policy against countries that, according to Trump, impose barriers on US products access.

The announcement of the 50% rate occurred after the president of the United States stated that “anyone who is part of BRICS receives a 10% rate very soon”, and later specify Brazil as the target of additional measures. The expansion of the tariff on Brazilian exports is the highest announced so far by the current US government.

The Ministry of Foreign Affairs, in articulation with the Ministries of Finance and Development, Industry, Commerce and Services, must hold meetings in the coming days to evaluate technical and diplomatic measures. Brazil is expected to seek support from multilateral organisms, such as the World Trade Organization (WTO), if the rate goes into force without prior negotiation.

The relationship between Brazil and the United States was being treated in commercial and diplomatic forums focused on gradual approach, but the recent exchange of communications among the presidents reversed the tone of the interlocution. Sources of the Brazilian government indicate that the strategy will be to maintain institutional dialogue, but firmly on the defense of sovereignty and national trade policy.