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US tariffs are expected to impact 21% of Brazilian exports.

President Luiz Inácio Lula da Silva stated this Wednesday (3) that Brazil will continue seeking other business partners to minimize the impacts of the trade policy adopted by the United States. Lula coordinated a ministerial meeting at the Planalto Palace, which takes place amid the announcement of new US tariffs on Brazilian products.“We will look for other partners. If he doesn’t want to buy, we will sell to whoever wants to buy. We are not going to complain. If he doesn’t want to invest here, we will look for someone else. Brazil is its own boss. This is a democratic and sovereign country,” the president told the cabinet ministers.

“We have decided to no longer adopt a subservient attitude towards the major powers. We are not better than anyone, but we are not worse. We will respect everyone, but we want respect,” he added.

Photo: Marcelo Camargo/Agência Brasil

On Monday (1st), the Office of the United States Trade Representative (USTR) suggested, among other actions, the imposition of a 25% tax on part of Brazilian imports to the country. The USTR report is the result of an investigation initiated a year ago in the Donald Trump administration against alleged “unfair practices” by Brazil in trade with the US.

Among other issues, to justify the measure, the institution accuses Pix of "unfairly" harming US companies that provide electronic payment services, such as credit card operators like MasterCard and Visa, and the WhatsApp Pay. 

Lula stated that he will now participate in the G7 meeting in France in June, something that was not in his plans. The event brings together the leaders of Germany, Canada, the United States, France, Italy, Japan, and the United Kingdom. Brazil will attend as a guest of the host, French President Emmanuel Macron.

“I wasn’t even going to the G7, but now I am. Someone needs to try to put things in order and stop this dismantling of multilateralism, democracy, and the devaluation of institutions. If the UN isn’t working today, we won’t fix the world by destroying the UN, we’ll fix it by rebuilding the UN,” said Lula, reaffirming his support for strengthening the United Nations and reforming its Security Council.

Negotiation

Photo: Courtesy of the Port of Santos

According to the Ministry of Development, Industry, Trade and Services (MDIC), the United States' tariff decision directly threatens 21% of total Brazilian exports to the US market.

The Brazilian government and affected companies will have until July 15 to comment on the USTR's final report, at which point the US may begin adopting "corrective measures" against Brazil.

According to Lula, the Americans' attitude is senseless since there was an ongoing negotiation between the two countries. He recalled that, in May, he agreed with the President of the United States, Donald Trump, on a 30-day deadline to reach an agreement on the trade issue.

The two met at the White House, and on that occasion, the Brazilian president handed over documents proving the favorable trade relationship between the US and Brazil. According to him, in the last 15 years, the United States' trade surplus was US$415 billion. "I left there convinced that we were establishing a new logic in the democratic and civilized relationship between Brazil and the United States. And I confess to you that I was surprised yesterday by their decision," Lula said today.

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