Lula threatens 50% tariff on US goods in retaliation for Trump levy on Brazil

The Guardian ^ | 07/11/2025

[SeekAndFind]

Brazil threatened to hit back against Donald Trump’s plan to introduce 50% tariffs on its exports with its own 50% tariff on US goods, setting the stage for a precipitous trade war.

“If he charges us 50%, we’ll charge him 50%,” Luiz Inácio Lula da Silva, the Brazilian president, told local news outlet Record, a day after Trump threatened to impose steep duties on Brazilian goods and accused the country of conducting a “witch-hunt” against its former president Jair Bolsonaro, who is facing a trial over his attempt to overturn his 2022 election defeat.

Brazil could appeal to the World Trade Organization, propose international investigations and “demand explanations”, Lula suggested. “But the main thing is the Reciprocity Law, passed by Congress,” he told Record, referring to recent legislation designed to defend Latin America’s largest economy from tariff attacks.

multiple people cross a street Trump announces 50% tariff on Brazil, citing a ‘witch-hunt’ against Bolsonaro Read more Trump’s claim that Brazil’s economic relationship with the US was “far from Reciprocal” was also “inaccurate”, Lula had said in a statement on Wednesday. US tariff hikes “will be addressed” by Brazil, he said.

Early on Thursday, Lula convened Brazilian ministers to discuss how his government should address Trump’s 50% tariff threat. The office of Lula’s chief of staff said a study group would be formed to decide how to react.

Trump has already pledged to retaliate if Brazil retaliates against his attack, with US tariffs due to come into force on 1 August. “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 50% that we charge,” he wrote in a letter to Lula on Wednesday, published on social media.

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TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: brazil; brics; gradeschool; jairbolsonaro; lula; tariffs

[Vendome]

Really?

FAFO Stew pit

[wiseprince]

The simplicity of Trumps message puts a smile on my face. Whatever you raise by we will raise by. I hope people stick with him on this because it’s a winner

[HANG THE EXPENSE]

Go ahead, I think we survive and they dont.

[caddie]

I am loving this give and take in world trade for once.

Formerly our balance of trade and tariffs were decided by a bunch of bribed, in-the-tank Senators and Representatives, not to mention all the pigs at the grift trough from the Executive Branch and the Free Trade Bush family.

Finally we are not having our lunch money taken away from us every day by every other country in the world.

[Mlheureux]

I didn’t realize Brazilians were wealthy and bought US goods?

[Vesuvian]

Oh noes! How will I afford Brazil nuts?

[webheart]

It’s so funny! The president of Brazil calls his entire cabinet to have a meeting while Trump decides everything by himself.

[Resolute Conservative]

I have an idea, block them from importing anything. We don’t need their junk, they need ours. We should make everything we need here outside of rare earth materials we need.

[Bookshelf]

Just tell Lula da Silva to shut up or Brazil will never sell a sack of coffee in the USA again.

[SeekAndFind]

I’ve been to Brazil and worked with companies there.

In Brazil, wealth is highly concentrated among a small segment of the population. As of the most recent data:

- The top 1% of Brazilians hold nearly 50% of the country’s total wealth.

- The top 10% control almost 80% of national wealth.

- Meanwhile, the bottom 50% actually have negative net wealth, meaning they carry more debt than assets.

In terms of millionaires:

- Brazil had about 380,000 millionaires in 2024, projected to rise to 470,000 by 2028.

- That’s roughly 1.5% of the adult population, aligning with global averages.

So while Brazil is home to a growing number of wealthy individuals, the percentage of truly wealthy Brazilians—those with significant net worth—is relatively small, and the gap between rich and poor remains stark.

Furthermore, - Brazil’s population in 2025 is estimated at around 215 million.

Roughly 23% of that equals roughly 49.5 million people in the upper middle class, This classification typically includes professionals, civil servants, and business owners with stable incomes and access to private services like education and healthcare and home ownership.

[jpp113]

Leftists love making decisions by committee. Its the socialist in them, they can’t help it.

[Bookshelf]

Reference rare earths, given a major find just check American Rare Earths Limited.

[montag813]

Unlike with China, we have a substantial trade surplus with Brazil - $7.4 billion in 2023.

[SeekAndFind]

RE: Unlike with China, we have a substantial trade surplus with Brazil - $7.4 billion in 2023.

So, why this punitive tariff on Brazil?

[sockmonkey]

*** We don’t need their junk ***

Actually, I am a fan of Tramontino knives and cookware from Brazil
I am not a fan of Taurus, but they, along with 24 other firearms manufacturers are in Brazil.

[for-q-clinton]

Or they can just stop persecuting their political foes.

[sockmonkey]

Lula referencing Trump’s 50% tariff threat to BRICS members:
“We are a sovereign nation. We don’t need an Emperor”

[Resolute Conservative]

It can all be made here, it used to be.

[dforest]

What will be the tariff on the BB, Brazilian Butt Lift?