Brazil Promises Response to New US Trade Tariffs

The government of Brazil has promised to take action after the United States announced a new 25% tariff on several Brazilian products. A tariff is a tax that a government puts on goods coming from another country. According to The Guardian, these new rules are scheduled to begin on July 22. Once they start, Brazil will become the second most heavily taxed country by the United States, following only China.

The Office of the United States Trade Representative (USTR) confirmed the decision late on Wednesday. The USTR stated that the tariffs were necessary because of what it called Brazil’s “unreasonable acts, policies, and practices” that have hurt American business. However, the Brazilian government says it has tried many times to show data proving these claims are wrong. Officials in Brazil believe the decision is based on politics rather than fair trade rules.

The relationship between the two countries has become very complicated. The office of Brazilian President Luiz Inácio Lula da Silva described the new tariffs as a sad moment in the history of the two nations. Lula’s team claims the tariffs are the result of pressure from the family of former Brazilian president Jair Bolsonaro. They argue that the Bolsonaro family worked with US leaders to create a false story to help their own political goals.

This trade issue is happening while Brazil prepares for elections in October. President Lula is seeking re-election, and his main opponent is Flávio Bolsonaro, the son of the former president. The Guardian reports that Lula’s relationship with US leaders is currently at a low point. Some politicians from Lula’s party believe that the US government is using these tariffs to influence the outcome of the Brazilian election.

US Secretary of State Marco Rubio defended the decision on social media. He stated that the Brazilian government had not negotiated in good faith, which means they were not honest or fair during discussions. Rubio wrote that President Lula has put his own ego ahead of the needs of the Brazilian people, and that these tariffs are the result of that behavior. He suggested that the US government is simply holding Brazil responsible for its actions.

In contrast, the Brazilian government has strongly rejected these claims. They called the people behind the pressure “false patriots” who are working against their own country to win an election. Interestingly, public opinion polls show that the tariffs might actually be helping President Lula. Many Brazilians seem to blame the Bolsonaro family for the new taxes. Because of this, Flávio Bolsonaro actually asked the US to stop the tariffs last week, fearing that they would make Lula more popular. When the US did not listen to his request, Flávio Bolsonaro turned his anger toward the current president, calling Lula a danger to the nation.

The situation is now creating a difficult path forward. Brazil has stated that it will immediately begin the process to use legal tools to respond to these new taxes. This could lead to a long period of tension between the two countries. For now, businesses in both nations are waiting to see how the trade rules will change the cost of goods and what kind of response Brazil will choose to make. As the election date gets closer, these economic problems are likely to remain a central part of the political conversation in Brazil.