Brazil's Lula da Silva Retaliates Against Trump's Tariff Hike
President Luiz Inácio Lula da Silva of Brazil has criticized the recent 50% increase in tariffs on Brazilian goods by U.S. President Donald Trump. Lula da Silva has pledged that such a measure will be met with a reciprocal response, indicating that Brazil might impose a similar 50% tariff on U.S. goods. This comes amid fears of a potential spike in inflation in Brazil and political tensions surrounding former President Jair Bolsonaro.
Background and Context
In a move that has sparked international controversy, President Trump announced a 50% increase in tariffs on all Brazilian products sold to the U.S. This decision, according to Trump, was prompted by the trade deficit with Brazil. However, President Lula da Silva has pointed out inaccuracies in Trump's information regarding bilateral trade.
Key Developments
President Lula da Silva has vowed to retaliate against the U.S. tariffs by invoking Brazil's reciprocity law, approved by Congress earlier this year. The law of reciprocity will be put into practice,
Lula da Silva said, according to Japan Times.
The Brazilian president has also taken to social media, mirroring the U.S. stance. In addition to his retaliatory approach, Lula da Silva has criticized Bolsonaro for his support of Trump's tariffs, insisting that he should share in the responsibility for the situation.
In a further development, Lula da Silva published an article in nine countries, speaking against excessive commercial tariffs between nations. This international offensive comes as a direct response to Trump's tariff imposition.
Implications and Reactions
There are fears within the Lula government that Trump's tariff hike could lead to a new leap in inflation in Brazil. This concern is shared by other political figures, such as Governor Tarcísio de Freitas, who has called for common sense and charged Lula da Silva and the Supreme Federal Court (STF) with responsibility.
Allies of Bolsonaro admit that his political group is experiencing wear due to the tariff increase. Bolsonaro himself has been cautious in his response, avoiding criticism of the U.S. action and urging urgent action from the Powers to address the situation.
Conclusion
As the tariff war escalates, President Lula da Silva remains firm in his decision to respond in kind to the U.S. tariff hike. Negotiations between the U.S. and Brazil continue, with the Brazilian president pledging to invoke the reciprocity law if a resolution cannot be reached.
This incident comes as Trump has also announced plans to impose a 35% tariff on goods from Canada, and warned of a blanket 15 or 20% hike for most other countries, signaling a potential shift in U.S. trade policies that could have significant global implications.