Brazilian President Luiz Inacio Lula da Silva has warned that Brazil will impose retaliatory tariffs if U.S. President Donald Trump follows through on his plan to raise tariffs on Brazilian imports to 50 percent starting August 1. Lula said Brazil would attempt negotiations first, but if talks fail, the country would invoke its new reciprocity law to match the tariffs.
Trump justified the move with accusations that Brazil interfered with free elections and free speech in the U.S., and criticized Lula’s government for prosecuting former president Jair Bolsonaro. Brazilian officials condemned the letter as politically motivated and factually inaccurate, citing that the U.S. has actually maintained a trade surplus with Brazil. Finance Minister Fernando Haddad and other officials argued the tariffs lack economic justification and are ideologically driven.
The trade conflict has raised concerns about economic impacts, especially on coffee and orange juice prices in the U.S., where Brazil is a key supplier. Coffee and orange juice futures spiked after the announcement. In response, Brazil is exploring new trade partnerships, particularly in the Global South and Middle East, to offset potential losses. Meanwhile, the Brazilian Foreign Ministry has formally rejected Trump’s letter, calling it offensive and untrue.
Credit : CGTN
You can listen to the programs organized by MI Radio on Google Podcast, Apple Podcast and Spotify.
You can download MI Radio application on Google Play Store and Apple App Store.
