Brazilian President Luiz Inacio Lula da Silva has mentioned that, if the US imposes tariffs on his nation, he’ll reply in type.
Talking at a information convention within the capital Brasilia, on Thursday, Lula mentioned his nation seeks a relationship primarily based on mutual respect. His feedback got here in response to US President Donald Trump’s risk of heightened tariffs.
“It is extremely easy: If he taxes Brazilian merchandise, there will probably be reciprocity,” Lula informed reporters.
“Trump was elected to run the US, and I used to be elected to run Brazil. I’ll respect the US and wish Trump to respect Brazil. That’s all.”
The feedback are the most recent sign that Trump’s efforts could spark a commerce struggle with US allies.
Lula’s stance additionally gives a mannequin for the way different Latin American international locations would possibly reply to Trump’s protectionist insurance policies. Trump has touted tariffs as a mechanism to spice up home business, in addition to to power worldwide rivals to accede to calls for starting from manufacturing to migration.
Earlier this week, Trump threatened massive tariffs towards Colombia when President Gustavo Petro initially refused to permit a US army flight bearing undocumented immigrants to land.
Petro objected to the US therapy of the immigrants, a few of whom had been reportedly handcuffed.
After the 2 leaders exchanged tariff threats, Petro backed down, permitting future flights to proceed, regardless of implying a comparability between Trump and “white slavers”.
However Trump has proceeded to dangle the prospect of tariffs towards different international locations for the reason that diplomatic spat.
On Thursday, for example, he informed reporters that he deliberate to make good on a promise to impose 25 % tariffs on the neighbouring international locations of Canada and Mexico, two of the US’s largest buying and selling companions.
“We don’t want the merchandise that they’ve,” Trump mentioned.
Trump has indicated the tariffs would incentivise Mexico and Canada to tighten their border safety and stem the move of medicine, migrants and asylum seekers. Up to now, Trump has additionally threatened to hold out army strikes inside Mexico to cope with drug-trafficking cartels that transfer fentanyl over the border.
Specialists tie the mounting shadow of tariffs to Trump’s said need to pursue an “America First” overseas coverage, placing US pursuits above all else.
His remarks at his second inauguration on January 20 emphasised that platform. Not solely did he tease impending tariffs “to complement our residents”, however he additionally laid out an expansionist imaginative and prescient for the US’s future, together with by way of the seizure of the Panama Canal.
These threats, nonetheless, haven’t been effectively acquired in Latin America, the place an extended historical past of US interventions and meddling stays resonant.
“I’ve ruled Brazil whereas the US had Republican and Democratic presidents, and our relationship has all the time been between two sovereign international locations,” mentioned Lula, who started his third non-consecutive time period in workplace in 2023 after defeating Trump ally Jair Bolsonaro.
The US has a commerce deficit with Brazil, from which it buys merchandise equivalent to espresso, oil, metal, plane and orange juice.
Brazil, in the meantime, largely purchases US items like power merchandise, pharmaceutical items and plane components. In accordance with Brazil’s Overseas Commerce Secretariat, the nation exported $337bn in items to the US in 2024, and imported $262.5bn.
However consultants say commerce deficits will not be essentially an indication of an unhealthy financial relationship: They’re affected by elements equivalent to shopper demand and foreign money values.
There are additionally fears {that a} US-sparked commerce struggle might empower different financial rivals to step in.
China, for instance, has expanded its financial ties with South America in recent times, turning into the first buying and selling accomplice for many international locations within the area.