Brazil claims it can survive without dependence on the U.S. after President Trump threatened to impose a 50% tariff on imported goods from Brazil.
President Lula emphasized that Brazil will seek new trade partners and called for a reduction in dependence on the USD, while pointing out that trade with the U.S. only accounts for 1.7% of Brazil's GDP.
MAIN CONTENT
Brazil can develop an independent economy without the United States.
President Trump threatened to impose a 50% tariff in retaliation for legal issues related to the former president of Brazil.
Trump's tax policy has been criticized by U.S. senators as harmful to the economy and an abuse of power.
Why does Brazil assert it can live well without the U.S.?
According to Brazilian President Luiz Inácio Lula da Silva, trade with the U.S. accounts for only 1.7% of Brazil's GDP, a small proportion compared to the overall national economy. Therefore, Brazil believes it can grow independently and actively seek new trade partners to diversify the market.
Lula also emphasized the desire to reduce dependence on the USD in international trade, along with a global direction for changing international payment methods, as he stated at the BRICS 2023 conference in Rio de Janeiro.
Lula's comments on U.S. tax policy towards Brazil
Immediately after U.S. President Donald Trump threatened to impose a 50% import tariff on Brazilian goods as a form of retaliation related to the legal issues of former president Jair Bolsonaro, Lula condemned this policy as a brutal interference in Brazil's internal affairs.
Brazil will not yield to pressure from unfair policies and will seek new global partners instead of being bound by rigid pressures from the United States.
Luiz Inácio Lula da Silva, President of Brazil, July 2023
What potential impacts could arise if the U.S. imposes a 50% tariff on Brazilian imports?
Economists predict that such high tariffs could reduce Brazil's economy by about 1% due to negative impacts on exports. The U.S. is currently Brazil's second-largest trading partner, after China.
On the other hand, the application of tariffs under the International Emergency Economic Powers Act (IEEPA) by Trump is being challenged in U.S. federal court, creating legal uncertainty for this policy.
Legal assessment and internal response from the United States
Trump's legal team argues that the use of IEEPA is legal to address national emergencies, including the U.S. trade deficit. However, many U.S. senators have strongly opposed the new tax policy.
This threat of tariffs is an abuse of power, which could kill many American job opportunities.
Tim Kaine, U.S. Senator, July 2023
Ron Wyden, senior senator from Oregon, also accused President Trump of exploiting economic policy for personal conflict, harming the country's economy.
How will Brazil cope with U.S. tax policy?
The Brazilian government under Lula's leadership is committed to taking appropriate retaliatory actions to protect national economic interests. At the same time, they will strengthen cooperation with BRICS countries and seek to diversify export markets to reduce the risk of dependence on the U.S.
According to experts, Brazil is clearly demonstrating a decisive stance in international trade to protect sovereignty and promote independent economic growth.
Frequently asked questions
Why is it important that trade with the U.S. only accounts for 1.7% of Brazil's GDP? This figure shows a low level of trade dependence, allowing Brazil to face pressure from the U.S. confidently. Can the IEEPA law apply tariffs to other countries? IEEPA allows the U.S. President to impose economic measures in a national emergency, but its use must comply with the law and can be challenged in court. What would be the impact of a 50% tariff on Brazil? High tariffs could reduce Brazil's economic growth by about 1% and negatively affect exports. Does Brazil have a plan to reduce dependence on the USD? Brazil is promoting the use of other currencies in international transactions and strengthening cooperation with BRICS countries. How have U.S. senators reacted to this tax policy? Many senators believe this is an abuse of power and could damage the U.S. economy as well as the government's credibility.
Source: https://tintucbitcoin.com/brazil-phat-trien-kinh-te-khong-can-my/
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