US President Trump has announced that starting August 1, a 50% tariff will be imposed on Brazilian goods, and has demanded that Brazil cease judicial investigations into former President Bolsonaro. On the 9th, Brazilian President Lula stated that, according to Brazil’s Economic Reciprocity Act, any unilateral tariff increase would be met with countermeasures.
Lula posted a statement on the social media platform X, saying that Brazil is a sovereign country with independent institutions and is not controlled by anyone.
He emphasized that Brazil’s judicial procedures are not subject to any interference or threat, and the independence of its national institutions is inviolable.
Lula also pointed out that US government statistics show that over the past 15 years, the US has had a trade surplus of about $410 billion (approximately RM1.7438 trillion) in goods and services with Brazil.
The US news outlet Axios reported that Trump is trying to use America’s economic might to influence another country’s internal affairs and benefit a personal ally; such an approach could rupture trade relations between the US and several countries with trade deficits against the US.
According to Brazil’s Economic Reciprocity Act passed by Congress in April of this year, if unilateral actions by other countries or economic entities negatively impact Brazil’s international competitiveness, Brazil’s Foreign Trade Commission can implement countermeasures, such as taxing products exported to Brazil, suspending commercial licenses, investment approvals, and intellectual property obligations—essentially restricting imports of goods and services.