Luiz Inacio Lula da Silva, president of Brazil, has stated that his administration will not immediately impose tariffs on Americans.
Instead, he called on Donald Trump, his US counterpart, to join him in trade negotiations on Friday.
Brazil currently pays 50% of its US exports, which is the highest current tariff rate for any nation besides India.
Brazil’s Chamber of Foreign Commerce (CAMEX) began looking into whether countermeasures would be imposed by local law on Thursday, despite Brazil’s unwillingness to respond in kind.
In a radio interview on Friday, Lula said, “This is a process that takes a while.” We must let the United States know that we can also take legal action against them. But I’m not too anxious. Negotiation is what I want.
As part of Trump’s push to put an end to a trial against his fellow far-right leader, Jair Bolsonaro, Brazil has been subject to the stringent US tariffs since August 1.
Since taking office, Bolsonaro, who presided over Brazil from 2019 to 2023, has been the subject of numerous legal proceedings, including allegations that he allegedly fabricated his COVID-19 vaccination records and used government resources to devalue the electoral process.
His most significant legal difficulty is his most recent trial for allegedly conspiring to overturn the 2022 election results, which he vehemently defeated.
In the beginning of September, the case will likely result in a verdict. Bolsonaro, on the other hand, has defended the proceedings as political persecution and denied wrongdoing.
Trump has made similar claims. He claimed in a letter to Lula from July 9 that the Brazilian government was censoring right-wing voices, and that he would impose the 50% tariff as a result.
“This trial shouldn’t be occurring,” he said. A witch hunt needs to end right away. Trump authored .
The letter also contained a warning against using any retaliatory measures: “Anytime you decide to raise your tariffs, whatever the number you choose to raise them by will be added to the 50% that we charge.
In response to Bolsonaro’s trial, the Trump administration also imposed sanctions and revoked Brazilian government visas.
Lula, however, has argued that Trump’s actions are an attempt to stifle Brazilian law.
Lula’s government claimed that the US’s 50 percent tariff violated international agreements by filing a complaint with the World Trade Organization on August 11.
Since then, the US and the international organization have agreed to consult. A panel from the World Trade Organization would likely evaluate Brazil’s case if that were to fail.
Brazil’s Foreign Ministry requested on Thursday that CAMEX investigate whether a reciprocity law passed by Congress could be used to carry out retaliatory measures against the US, with approval from Lula’s Ministry of Foreign Affairs.
CAMEX will have 30 days to make its conclusions regarding the potential impact of US tariffs on the market.
Lula told Radio Itatiaia on Friday, “I took this measure because we have to move forward with the process.” It will take a year if we follow the law’s requirements.
Lula has repeatedly claimed that Trump administration officials have resisted engaging in negotiations to lower the hefty export taxes.
The US exports to Brazil are more than its imports, according to the US Trade Representative. More than $ 127.6 billion was traded in total goods and services with Brazil last year, up from $ 202 billion.
Lula reiterated his desire to speak with Trump in a radio interview on Friday, stating that he opposed to a trade war. Brazil won’t, he added, abandoning its own sovereignty.
Source: Aljazeera
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