Released on August 29, 2025
Brazilian President Luis Inacio Lula da Silva shows that his government will not immediately impose retaliatory tariffs on the United States.
Instead, on Friday he joined trade negotiations repeatedly calling on US counterpart Donald Trump.
Currently, Brazil faces a 50% tax on all exports to the US, the highest tariff rate in all countries except India.
Brazil has not yet responded in physical form, but on Thursday its Foreign Chamber of Commerce (COMEX) began investigating whether measures would apply under local law.
“This is a bit of a time-consuming process,” Lula said in an interview with Radio Itachia on Friday. “We must tell the US that we also have actions that we can take against them. But I am not in a hurry. All I want is to negotiate.”
Since August 1, Brazil has faced sudden US tariffs as part of Trump’s pressure campaign to end trials against his fellow far-right leader, Jair Bolsonaro.
Bolsonaro, who made Brazil’s president from 2019 to 2023, has faced multiple legal investigations since his resignation, including falsifying his Covid-19 vaccine records and using government resources to undermine confidence in the electoral system.
However, his biggest legal hurdle was his current trial, which is allegedly planned to overturn the outcome of the 2022 election, and he lost narrowly to Lula.
A verdict is expected for the incident in early September. Meanwhile, Bolsonaro denied the misconduct and called the lawsuit political persecution.
Trump reflects those accusations. In a letter to Lula on July 9, he accused the Brazilian government of censoring the right-wing voices, and said it would impose a 50% tariff as a result.
“This trial should not be held. It’s a witch hunt that should be over soon!” Trump wrote.
The letter also included warnings against retaliatory measures. “If for any reason you decide to raise tariffs, whatever number you choose to raise them, it will be added to the 50% you charge.”
The Trump administration also stripped Brazilian officials of sanctions and visas in response to the Bolsonaro trial.
However, Lula framed Trump’s actions as an effort to interfere with Brazil’s legal process.
On August 11, the Lula government filed a complaint with the World Trade Organization, claiming that the US had violated the international agreement by imposing a 50% tariff.
The United States has since agreed to a consultation process with international organizations. If that fails, the World Trade Organization panel is probably the severity of the Brazilian incident.
On Thursday, Brazil’s Foreign Ministry called for permission from Lula to investigate whether retaliation measures against the United States could be implemented using the Congress-passed Reciprocal Relations Act.
It takes 30 days to compile the findings of how the law applies to US customs duties.
“We’ve taken this scale because we have to go through this process,” Lula told Radio Itachiaire on Friday. “If it’s required by law, it will take a year.”
Lula has repeatedly said that Trump authorities will refuse to negotiate with his administration and will lower large export taxes.
According to the US Trade Representative, the US has a trade surplus with Brazil, with exports to South American countries outweighing imports. Total goods and services transactions with Brazil reached nearly $127.6 billion last year, rising in 2023.
In a radio interview on Friday, Lula reiterated her desire to talk to Trump, stressing that she doesn’t want a trade war. However, he added that Brazil would not sacrifice its sovereignty.
“For now, Brazil is open to negotiations with the US,” Lula said. “The difference is that Brazil doesn’t need to bow their heads to the US.”
