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

[brookwood]

Lula doesn’t seem to realize that Brazil already has a 60 percent tariff on American goods and almost all foreign goods. It is divided into 3 separate tax regimes, but if you get caught at an airport with an iphone still in the box it will cost you a $1000 fine/tariff imposition.
Duties are II, IPI and ICMS, they add up to 60 percent.

https://www.trade.gov/country-commercial-guides/brazil-import-tariffs

[fella]

So?

“At this point in time what possible difference could this make?”

[Bob Wills is still the king]

“I didn’t realize Brazilians were wealthy and bought US goods?”
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The trade currently between the US and Brazil is very close to even between the two. There’s no economic reason for Trump’s action now, he just wants to leverage his ability to impose tariffs on Brazil because his buddy Bolsonaro is being held to account for his apparent violations of Brazilian law.