Brazil’s Lula Warns of Retaliation as Trump’s Tariff Threats Risk Trade War with Latin America
Brazilian President Luiz Inácio Lula da Silva has issued a firm warning to the United States, saying that Brazil will reciprocate any tariffs imposed by Washington, Al Jazeera reports.
His comments come in response to President Donald Trump’s trade policies, which threaten to ignite a trade war with key allies.
Speaking at a press conference in Brasilia on Thursday, Lula emphasized his desire for a relationship based on mutual respect.
“It is very simple: If he taxes Brazilian products, there will be reciprocity,” he told reporters. “Trump was elected to run the US, and I was elected to run Brazil. I will respect the US and want Trump to respect Brazil. That’s all.”
Lula’s stance offers a potential model for other Latin American nations grappling with Trump’s protectionist policies. The US President has repeatedly touted tariffs as a tool to bolster domestic industry and pressure international rivals on issues ranging from manufacturing to migration.
This week, Trump threatened steep tariffs against Colombia after President Gustavo Petro initially refused a US military flight carrying undocumented immigrants. Petro relented after the tariff threats, though not without likening Trump to “white slavers,” underscoring the growing tension.
Trump has also targeted Canada and Mexico, two of the US’s largest trading partners, threatening a 25% tariff on goods entering the US. The move, Trump has stated, is intended to incentivize tighter border security and curb the flow of drugs, migrants, and asylum seekers. He has even previously threatened military action inside Mexico to deal with drug cartels.
Experts attribute these mounting tariff threats to Trump’s “America First” foreign policy. At his recent inauguration, Trump not only teased tariffs but also hinted at expansionist goals, including the seizure of the Panama Canal.
These pronouncements have been met with consternation in Latin America, where a history of US interventions and interference remains a sensitive topic.
“I have governed Brazil while the US had Republican and Democratic presidents, and our relationship has always been between two sovereign countries,” Lula said.
Brazil, a significant trading partner of the US, exports goods like coffee, oil, steel, aircraft, and orange juice, while importing energy products, pharmaceuticals, and aircraft parts. According to Brazil’s Foreign Trade Secretariat, the country exported $337 billion worth of goods to the US in 2024, while importing $262.5 billion.
Despite the trade deficit, experts note that such imbalances don’t necessarily indicate an unhealthy economic relationship. Factors like consumer demand and currency values heavily influence trade balances.
The prospect of a US-triggered trade war also raises concerns that other economic powers, notably China, could fill the void left by deteriorating US relationships in the region. China has become the primary trading partner for many South American countries, further complicating the geopolitical landscape.
