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Brazil can reciprocate new US tariffs, says Lula

Thursday, July 10


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President Luiz Inácio Lula da Silva warned Wednesday that Brazil could reciprocate if his U.S. counterpart, Donald Trump, makes good on his threat to impose 50 percent tariffs on Brazilian products.

"Any unilateral tariff increase will be addressed in light of the Brazilian Economic Reciprocity Law," the leftist president said on the social network X.

In a letter to Lula and published Wednesday on his Truth Social platform, Trump announced the increase in tariffs on imports from Brazil in retaliation for the trial of former Brazilian president Jair Bolsonaro, his political ally.

Leftist Lula said the Supreme Court case against Bolsonaro, a far-right leader who governed from 2019 to 2022,"is solely within the jurisdiction of the Brazilian justice system and is therefore not subject to any kind of interference or threat."

Bolsonaro could face up to 40 years in prison if convicted of leading a "criminal organization" to prevent Lula's inauguration after the 2022 elections.

Lula also alluded to Trump's criticism of the Brazilian justice system's actions regarding speech on social media platforms.

"In Brazil, freedom of expression is not confused with aggression or violent practices. To operate in our country, all national and foreign companies are subject to Brazilian law," he stated.

In April, the Brazilian Congress unanimously approved the Economic Reciprocity Law, giving the executive branch the tools to address trade barriers after Trump announced 10 percent tariffs on imports from several countries, including Brazilian ones.

The law authorizes the Executive Branch to decide whether to suspend trade concessions, investments, and obligations related to intellectual property rights.

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