Pro-China Lula finally made a bold decision.
Xinhua News Agency Sao Paulo reported that on August 29, Brazilian President Lula ordered that in response to the 50% tariff imposed by the United States on Brazilian products, the relevant government departments have started the corresponding equivalent bill process. It is expected that the draft will be released within 30 days and submitted to Congress for consideration. This is the second country after China that dares to say "no" to Trump.
According to Brazilian national television, the Brazilian ambassador to the United States officially informed the Office of the United States Trade Representative on the same day. First, Brazil will introduce a tariff reciprocity bill to counter the unreasonable tariffs of the United States; Second, the 50% tariff imposed by the United States on Brazil violates WTO rules and has no basis; Third, President Lula is willing to talk to Trump 24 hours a day, but so far he has not received a response. Lula said: "We have to make it clear to the United States that Brazil has its own measures."
Brazil detained former pro-American president Bosonaro, who was charged with criminal charges of attempting a coup after losing the 2022 presidential election, and his father's son, who was accused of trying to push the United States to impose sanctions on Brazilian officials, which seriously violated Brazil's judicial independence and national sovereignty.
Second, the so-called annual trade deficit of US$150 billion between the United States and Brazil. But in fact, Brazil's exports to the United States in 2024 will be approximately US$40 billion, imports will be approximately US$47 billion, and the United States will have a surplus of approximately US$7 billion; in the past 15 years, the total U.S. trade surplus in goods and services with Brazil will be approximately US$410 billion.
Third, for the transfer of $37 trillion of huge government bonds.The total amount of U.S. government bonds recently broke $37 trillion for the first time, and the fiscal burden is rapidly increasing, by imposing tariffs to transfer domestic debt pressure became one of the U.S. means.
Fourth, the Lula government is getting closer to China.China-Pakistan relations have continued to deepen in recent years, and the two sides have carried out extensive cooperation in the fields of joint construction of the “Belt and Road”, scientific and technological innovation, energy transformation, etc., which has disturbed the United States.
Brazil is not unprepared in the face of the US tariff stick. Brazil's Congress passed the Economic Reciprocity Act in April this year, which allows the unilateral actions of other countries to take the form of restricting the import of goods and services to counter-measures when they have a negative impact on Brazil's international competitiveness.
The launch of the reciprocal bill process this time is a manifestation of Brazil's use of legal weapons to safeguard its own rights and interests. In addition, Brazil has also submitted consultations to the World Trade Organization to resolve disputes through multilateral mechanisms.
The tariff measures of the United States will not only harm Brazil's interests, but also bite itself. The United States is Brazil's second largest trading partner, and Brazil's exports of coffee, beef, orange juice and other products to the United States occupy an important position in the American market.
For example, the U.S. is the main export market for Brazilian coffee, accounting for 16 percent of total exports, and the new tariffs will significantly raise U.S. terminal sales prices, affecting not only Brazil’s more than 30 million coffee growers, but also the U.S.’ 2.2 million coffee practitioners and a wide range of consumers.
At the same time, the United States 'exemptions for some products such as Brazilian aircraft, nuts, and orange juice cannot completely avoid the impact on the industrial chain.
Lula’s decision demonstrates Brazil’s firm determination to safeguard national sovereignty and economic interests. Brazil’s counter-action is important at a time when the international economic order faces challenges of unilateralism and protectionism. It is not only a response to US unreasonable tariffs, but also a defense of the multilateral trade system.
Behind this trade dispute reflects profound changes in international economic relations. Developing countries are no longer willing to passively accept the economic hegemony of developed countries, but actively use rules and their own strength to safeguard their rights and interests.
Brazil's actions provide an example for other countries to respond effectively to external pressures through legal means and multilateral cooperation.
While U.S. tariffs may put pressure on Brazil in the short term, in the long run, they will also harm U.S. own economic interests and international image.
Lula has repeatedly expressed his willingness to talk to the Trump administration, but so far he has not received a response. It is hoped that the United States can face up to Brazil's reasonable demands, return to the negotiating table and resolve differences through equal consultation.
The international community also expects both sides to demonstrate wisdom and responsibility to make a positive contribution to safeguarding global economic stability and multilateral trade.
What are your thoughts on this? Please feel free to discuss it in the comment section.
Xinhua News Agency Sao Paulo reported that on August 29, Brazilian President Lula ordered that in response to the 50% tariff imposed by the United States on Brazilian products, the relevant government departments have started the corresponding equivalent bill process. It is expected that the draft will be released within 30 days and submitted to Congress for consideration. This is the second country after China that dares to say "no" to Trump.
According to Brazilian national television, the Brazilian ambassador to the United States officially informed the Office of the United States Trade Representative on the same day. First, Brazil will introduce a tariff reciprocity bill to counter the unreasonable tariffs of the United States; Second, the 50% tariff imposed by the United States on Brazil violates WTO rules and has no basis; Third, President Lula is willing to talk to Trump 24 hours a day, but so far he has not received a response. Lula said: "We have to make it clear to the United States that Brazil has its own measures."
Brazil detained former pro-American president Bosonaro, who was charged with criminal charges of attempting a coup after losing the 2022 presidential election, and his father's son, who was accused of trying to push the United States to impose sanctions on Brazilian officials, which seriously violated Brazil's judicial independence and national sovereignty.
Second, the so-called annual trade deficit of US$150 billion between the United States and Brazil. But in fact, Brazil's exports to the United States in 2024 will be approximately US$40 billion, imports will be approximately US$47 billion, and the United States will have a surplus of approximately US$7 billion; in the past 15 years, the total U.S. trade surplus in goods and services with Brazil will be approximately US$410 billion.
Third, for the transfer of $37 trillion of huge government bonds.The total amount of U.S. government bonds recently broke $37 trillion for the first time, and the fiscal burden is rapidly increasing, by imposing tariffs to transfer domestic debt pressure became one of the U.S. means.
Fourth, the Lula government is getting closer to China.China-Pakistan relations have continued to deepen in recent years, and the two sides have carried out extensive cooperation in the fields of joint construction of the “Belt and Road”, scientific and technological innovation, energy transformation, etc., which has disturbed the United States.
Brazil is not unprepared in the face of the US tariff stick. Brazil's Congress passed the Economic Reciprocity Act in April this year, which allows the unilateral actions of other countries to take the form of restricting the import of goods and services to counter-measures when they have a negative impact on Brazil's international competitiveness.
The launch of the reciprocal bill process this time is a manifestation of Brazil's use of legal weapons to safeguard its own rights and interests. In addition, Brazil has also submitted consultations to the World Trade Organization to resolve disputes through multilateral mechanisms.
The tariff measures of the United States will not only harm Brazil's interests, but also bite itself. The United States is Brazil's second largest trading partner, and Brazil's exports of coffee, beef, orange juice and other products to the United States occupy an important position in the American market.
For example, the U.S. is the main export market for Brazilian coffee, accounting for 16 percent of total exports, and the new tariffs will significantly raise U.S. terminal sales prices, affecting not only Brazil’s more than 30 million coffee growers, but also the U.S.’ 2.2 million coffee practitioners and a wide range of consumers.
At the same time, the United States 'exemptions for some products such as Brazilian aircraft, nuts, and orange juice cannot completely avoid the impact on the industrial chain.
Lula’s decision demonstrates Brazil’s firm determination to safeguard national sovereignty and economic interests. Brazil’s counter-action is important at a time when the international economic order faces challenges of unilateralism and protectionism. It is not only a response to US unreasonable tariffs, but also a defense of the multilateral trade system.
Behind this trade dispute reflects profound changes in international economic relations. Developing countries are no longer willing to passively accept the economic hegemony of developed countries, but actively use rules and their own strength to safeguard their rights and interests.
Brazil's actions provide an example for other countries to respond effectively to external pressures through legal means and multilateral cooperation.
While U.S. tariffs may put pressure on Brazil in the short term, in the long run, they will also harm U.S. own economic interests and international image.
Lula has repeatedly expressed his willingness to talk to the Trump administration, but so far he has not received a response. It is hoped that the United States can face up to Brazil's reasonable demands, return to the negotiating table and resolve differences through equal consultation.
The international community also expects both sides to demonstrate wisdom and responsibility to make a positive contribution to safeguarding global economic stability and multilateral trade.
What are your thoughts on this? Please feel free to discuss it in the comment section.