In Interview with Record TV
Reaffirms Previous Day's Statement on "Retaliatory Measures"
Trump Uses Tariffs as Leverage for Political Pressure
Brazilian President Luis Inacio Lula Da Silva announced on July 10 (local time) that if the United States imposes a 50% reciprocal tariff, Brazil will retaliate with an identical tariff. This reaffirmed his stance just one day after hinting at retaliatory measures by referencing "economic reciprocity."
In an interview with Record TV on the same day, President Lula stated, "If the United States imposes 50% on Brazil, we will also impose 50%," adding, "We will try to negotiate, but if negotiations fail, we will invoke the reciprocity law."
On July 9, immediately after President Donald Trump announced a 50% reciprocal tariff on Brazil, President Lula suggested retaliatory measures through a post on the social media platform X (formerly Twitter), stating, "Unilateral tariff increases will be addressed in consideration of Brazil's reciprocity law."
The new reciprocal tariff imposed by the United States on Brazil is 50%, which is 40 percentage points higher than the 10% imposed on April 2. In an official letter addressed to President Lula, President Trump expressed his dissatisfaction with the Brazilian government's decision to prosecute former President Jair Bolsonaro, describing it as a "witch hunt."
President Lula criticized President Trump for using tariffs as leverage to exert political pressure over the criminal trial of former Brazilian President Jair Bolsonaro, who is known to be close to Trump.
Opinions within Brazil are divided. According to AP, the National Congress is supporting President Lula, while the business community is concerned about the potential impact on the domestic manufacturing sector if a full-scale tariff war with the United States breaks out.
Senate President Davi Alcolumbre and Chamber of Deputies Speaker Hugo Motta emphasized in a joint statement, "We are prepared to respond in a balanced and firm manner to protect the economy, the productive sector, and jobs," stressing that the law serves as a means to safeguard Brazil's sovereignty.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
