Brazil Hit with 50% U.S. Tariff... Lula Holds One-Hour Call with Xi Jinping

On the Day of the Call, U.S. and China Extend 90-Day Tariff Truce

From the left, Luis Inacio Lula DaSilva, President of Brazil, and Xi Jinping, President of China. Photo by AFP Yonhap News

Brazil has moved to strengthen its relationship with China in an effort to overcome the diplomatic challenges caused by U.S. President Donald Trump’s imposition of 50% reciprocal tariffs.

According to the South China Morning Post (SCMP) and China’s Xinhua News Agency on August 12, Brazilian President Luis Inacio Lula DaSilva held a phone conversation with Chinese President Xi Jinping that lasted about one hour. The call between the two leaders was initiated at Brazil’s request.

During the conversation, President Xi emphasized, “All countries must unite and take a clear stand against unilateralism and protectionism.” Although he did not mention specific situations, his remarks are widely interpreted as a message directed at the United States. He added, “China supports the Brazilian people in safeguarding national sovereignty and defending their legitimate rights and interests,” and agreed that the two countries would strengthen cooperation on the international stage.

President Xi also stated, “Global South countries-referring mainly to emerging and developing nations in the Southern Hemisphere-should join hands to uphold international fairness and justice, the fundamental norms of international relations, and the legitimate rights and interests of developing countries.” He continued, “We must set an example of unity and self-reliance among major Global South nations and work together toward a fairer world and a more sustainable planet.”

According to Xinhua News Agency, President Lula outlined the recent state of Brazil-U.S. relations and reaffirmed Brazil’s principled stance on firmly defending its sovereignty. He also expressed high appreciation for China’s commitment to multilateralism, its defense of free trade rules, and its responsible role in international affairs. Furthermore, he reportedly stated, “Brazil is willing to strengthen communication and coordination through multilateral mechanisms such as BRICS, oppose unilateral acts of bullying, and protect the common interests of all countries.”

This dialogue between the two leaders took place just four days after the Trump administration imposed a 50% reciprocal tariff on imports from Brazil. Previously, only a 10% base tariff had been applied to Brazilian goods, but this was raised by a substantial 40 percentage points to 50%. President Trump, referencing former President Jair Bolsonaro, who is currently on trial, described the situation as a “witch hunt” and used it as grounds to pressure the Brazilian government.

The SCMP pointed out, “Just hours before the phone call between the two countries, the United States extended a 90-day grace period for imposing the same tariffs on Chinese products, which clearly demonstrates the different treatment the U.S. has given to China and Brazil.”