In an interview with Reuters, Lula stated that he believes Trump is not willing to engage in dialogue about U.S. tariffs. Therefore, Brazil should not lower itself to begging for a fair deal. He stated that any contact will only occur if his instinct tells him that Trump is ready for a serious conversation.
His comments come after the United States' decision to impose an additional 25% tariff on Indian products, which has intensified trade tensions between the two countries. Despite this, Lula stated that Brazil will not impose retaliatory tariffs immediately.
Instead, his government will implement internal economic measures to mitigate the impact of tariffs. Lula revealed that he plans to talk with Indian Prime Minister Narendra Modi and Chinese President Xi about a coordinated BRICS strategy to counteract U.S. tariffs.
The Brazilian president believes that a collective response against U.S. tariffs from emerging economies could be more effective than acting alone. He criticized Trump for linking the new tariffs to pressure on Brazil's Supreme Court to halt the prosecution of former president Jair Bolsonaro.
Lula labeled Bolsonaro a traitor for fostering foreign influence over the Brazilian judiciary and stated that the courts will maintain their independence against any external pressure. He also accused the United States of trying to impose its conditions on a sovereign nation.
The Brazilian president recalled the previous interference during the military coup of 1964 and stated that the current actions of Washington are a continuation of that mentality. He also hinted at the creation of a new national strategy for Brazil's mineral resources, considering them a matter of national sovereignty.
This would steer Brazil away from exporting low-value raw materials and lead to greater national industrialization. U.S. tariffs have caused drops in bitcoin prices at different times. Therefore, this response could negatively affect the currency's price again if it escalates and turns into a large-scale trade war.
