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2025-01-30 22:21:00
Brazilian President Luiz Inacio Lula da Silva has stated that, if the US imposes tariffs on his nation, he’ll reply in form.
Talking at a information convention within the capital Brasilia, on Thursday, Lula stated his nation seeks a relationship based mostly on mutual respect. His feedback got here in response to US President Donald Trump’s menace of heightened tariffs.
“It is extremely easy: If he taxes Brazilian merchandise, there will probably be reciprocity,” Lula instructed reporters.
“Trump was elected to run the US, and I used to be elected to run Brazil. I’ll respect the US and need Trump to respect Brazil. That’s all.”
The feedback are the newest sign that Trump’s efforts might spark a commerce conflict with US allies.
Lula’s stance additionally provides a mannequin for the way different Latin American nations would possibly reply to Trump’s protectionist insurance policies. Trump has touted tariffs as a mechanism to spice up home trade, in addition to to pressure worldwide rivals to accede to calls for starting from manufacturing to migration.
Earlier this week, Trump threatened giant tariffs towards Colombia when President Gustavo Petro initially refused to permit a US army flight bearing undocumented immigrants to land.
Petro objected to the US remedy of the immigrants, a few of whom had been reportedly handcuffed.
After the 2 leaders exchanged tariff threats, Petro backed down, permitting future flights to proceed, regardless of implying a comparability between Trump and “white slavers”.
However Trump has proceeded to dangle the prospect of tariffs towards different nations because the diplomatic spat.
On Thursday, as an example, he instructed reporters that he deliberate to make good on a promise to impose 25 p.c tariffs on the neighbouring nations of Canada and Mexico, two of the US’s greatest buying and selling companions.
“We don’t want the merchandise that they’ve,” Trump stated.
Trump has indicated the tariffs would incentivise Mexico and Canada to tighten their border safety and stem the stream of medication, migrants and asylum seekers. Prior to now, Trump has additionally threatened to hold out army strikes inside Mexico to take care of drug-trafficking cartels that transfer fentanyl over the border.
Specialists tie the mounting shadow of tariffs to Trump’s said need to pursue an “America First” international coverage, placing US pursuits above all else.
His remarks at his second inauguration on January 20 emphasised that platform. Not solely did he tease impending tariffs “to counterpoint our residents”, however he additionally laid out an expansionist imaginative and prescient for the US’s future, together with via the seizure of the Panama Canal.
These threats, nonetheless, haven’t been nicely obtained in Latin America, the place an extended historical past of US interventions and meddling stays resonant.
“I’ve ruled Brazil whereas the US had Republican and Democratic presidents, and our relationship has all the time been between two sovereign nations,” stated Lula, who started his third non-consecutive time period in workplace in 2023 after defeating Trump ally Jair Bolsonaro.
The US has a commerce deficit with Brazil, from which it buys merchandise corresponding to espresso, oil, metal, plane and orange juice.
Brazil, in the meantime, largely purchases US items like vitality merchandise, pharmaceutical items and plane components. In keeping with Brazil’s International Commerce Secretariat, the nation exported $337bn in items to the US in 2024, and imported $262.5bn.
However consultants say commerce deficits are usually not essentially an indication of an unhealthy financial relationship: They’re affected by components corresponding to shopper demand and foreign money values.
There are additionally fears {that a} US-sparked commerce conflict may empower different financial rivals to step in.
China, for instance, has expanded its financial ties with South America in recent times, turning into the first buying and selling accomplice for many nations within the area.
