Bolsonaro's Legal Troubles Prompt Tariff Threat from Trump, Lula Vows Reciprocity

In a recent interview, Brazilian President Luiz Inacio Lula da Silva expressed his intention to resolve the impending trade conflict with US President Donald Trump regarding the proposed 50 percent tariffs on Brazilian exports, which are set to take effect on August 1. Lula emphasized that his administration would first pursue negotiations; however, if that path does not yield results, he would invoke reciprocal tariffs, referencing recent congressional legislation granting him authority to retaliate against foreign trade barriers. He pointedly noted, "If they impose a 50 percent tariff on us, we will charge them the same."

While discussions around possible repercussions are ongoing, sources indicate that Lula is not expected to announce any retaliatory actions until the tariffs are officially instituted. A Brazilian diplomat, who wished to remain anonymous, highlighted the timeline, emphasizing, "We have until August 1."

Complicating the situation further, Trump indicated in a letter to Lula that the tariffs were a response to Brazil's judiciary initiating legal action against former President Jair Bolsonaro. Bolsonaro is facing trial for allegedly conspiring to prevent Lula from assuming the presidency in 2023, following incidents where his supporters stormed the Congress building. Trump characterized these judicial actions as a "witch hunt" against Bolsonaro.

Lula, however, has criticized Bolsonaro for his claims of being victimized legally, asserting that the former president should be accountable for his actions that have led to the current predicament. Lula stated that it was Bolsonaro's son, Eduardo, who sought to influence Trump's decisions regarding Brazil during his time in the United States.

In response, Bolsonaro acknowledged receiving Trump's letter regarding the tariffs with a sense of responsibility and reiterated his admiration for the US government. He conjectured that the tariffs were a consequence of Brazil's shift away from principles of freedom, arguing that such measures would never have been considered during his presidency. Bolsonaro concluded by calling for political leaders to take action in restoring what he described as "institutional normality.