
Exclusive: Lula rejects 'humiliation' of calling Trump over US-Brazil tariff
Brazil is not about to announce reciprocal tariffs, he said. Nor will his government give up on cabinet-level talks. But Lula himself is in no rush to ring the White House.
"The day my intuition says Trump is ready to talk, I won't hesitate to call him," Lula said in an interview from his presidential residence in Brasilia. "But today my intuition says he doesn't want to talk. And I'm not going to humiliate myself."
Despite Brazil's exports facing one of the highest tariffs imposed by Trump, the new U.S. trade barriers look unlikely to derail Latin America's largest economy, giving Lula more room to stand his ground against Trump than most Western leaders.
Lula described U.S.-Brazil relations at a 200-year nadir after Trump tied the new tariff to his demand for an end to the prosecution of right-wing former President Jair Bolsonaro, who is standing trial for plotting to overturn the 2022 election.
The president said Brazil's Supreme Court, which is hearing the case against Bolsonaro, "does not care what Trump says and it should not," adding that Bolsonaro should face another trial for provoking Trump's intervention, calling the right-wing former president a "traitor to the homeland."
"We had already pardoned the U.S. intervention in the 1964 coup," said Lula, who got his political start as a union leader protesting against the military government that followed. "But this now is not a small intervention. It's the president of the United States thinking he can dictate rules for a sovereign country like Brazil. It's unacceptable."
Lula said his ministers were struggling to open talks with U.S. peers, so his government was focused on domestic measures to cushion the economic blow of U.S. tariffs, while maintaining "fiscal responsibility."
He also said he was planning to call leaders from the BRICS group of developing nations, starting with India and China, to discuss the possibility of a joint response to U.S. tariffs.
Lula also described plans to create a new national policy for Brazil's strategic mineral resources, treating them as a matter of "national sovereignty" to break with a history of mining exports that added little value in Brazil.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Independent
an hour ago
- The Independent
Why Trump's tariffs could be a disaster for Brazil's acai industry and American consumers
When U.S. President Donald Trump imposed tariffs of 50% on Brazilian exports in July, acai producer Ailson Ferreira Moreira felt immediately concerned. After all, who was going to eat all of that Amazon berry, globally famous as a delicious, refreshing and nutritious superfood, if American consumers suddenly could no longer afford it? As the main importer of the Brazilian berry, prices of acai smoothies and bowls look certain to go up in the United States. 'The acai that's all produced here ... If only people here eat it, it's going to be a lot of acai, right?' Moreira told The Associated Press outside of Belem, an Amazon city of 1.4 million residents that will host this year's U.N. climate summit COP30 climate summi t in November. 'If there's too much acai here, people won't be able to eat it all and the price will drop.' A single full crate of acai sells for around $50 at local markets in Brazil, a price that is now expected to plummet. The U.S. is by far the largest acai importer of a total Brazilian output currently estimated at about 70,000 tons per year. Impact already being felt The most vulnerable acai producers in the northern state of Para say they have already been hit by tariffs imposed by the U.S. government, as a surplus of the berry without a clear destination starts to mount only days after the new economic scenario unfolded. More powerful exporters, such as Sao Paulo-state based company Acai Tropicalia Mix, are also feeling the impact. One of its owners, Rogério de Carvalho, told the AP that last year he exported to the U.S. about 270 tons of acai cream — an industrialized version of the berry — ready for consumption. As tariffs started to loom, he said, American importers steered away and clients suspended negotiations. Until the end of July, de Carvalho estimates that his company sold 27 tons to the U.S. 'That's 1.5 million Brazilian reais ($280,000) that we lost,' the businessman said. 'We are confident there will be a deal between the two countries to allow not only our clients to return, but also getting some new ones.' Tariffs linked to Bolsonaro case Trump has linked the higher tariffs on Brazil to the trial of former President Jair Bolsonaro, who is now under house arrest for his alleged role in leading an alleged coup plot to remain in office, despite his election loss to current leftist President Luiz Inácio Lula da Silva. And despite several Brazilian exports being exempted from the tariffs, acai berries aren't among them. Brazil's industry ministry didn't reply to a request for comment on whether acai berries are among the items that remain on the negotiating table with U.S. trade representatives. Flavor explosion Nearly all of the acai consumed in the U.S. originates from Brazil, with the state of Para alone accounting for 90% of the country's total production. Several communities in the Amazon depend on its harvest. The harvesting of acai is a physically demanding job that requires workers to climb tall trees with minimal safety equipment, and then sliding down branches full of berries to fill baskets and then place them carefully in crates. Analysts say its producers also help protect the rainforest from illegal loggers, miners and cattle ranchers. The night markets of Belem, such as the Ver-o-Peso acai market, are a hub of activity where the freshly harvested berries are brought in by boat and prepared for sale. The Brazilian Association of Fruit and Derivative Producers and Exporters estimates there was an explosive growth of acai exports from Para state, from less than one ton in 1999 to more than 61,000 tons in 2023. Another explosive rise was expected for this year, before the tariffs. On Thursday, Brazil requested consultations at the World Trade Organization over tariffs imposed by the Trump administration against the South American nation that went into effect on Wednesday. That could be took little too late for acai harvester Mikael Silva Trindade, who agrees that the future of the trade is at risk as higher U.S. tariffs can disrupt the delicate balance of supply and demand that holds the industry. 'There will be nowhere to market (the excess of acai),' Trindade told the AP as he picked berries in Para state. 'The more you export, the more valuable it becomes. But if there's too much to sell, it will stay here and become cheap.' ___ Mauricio Savarese reported from Sao Paulo. ___

South Wales Argus
an hour ago
- South Wales Argus
Trump drug price plans could harm patients claim Welsh Lib Dems
This is the claim of the Welsh Liberal Democrats who said the move could harm the Welsh NHS and the thousands of people working in Wales' pharmaceutical sector. The life sciences sector in Wales employs more than 12,000 people across more than 250 companies, including PCI Pharma Services in Tredegar and a growing cluster of specialist producers in Newport. It contributes approximately £2.6 billion to the Welsh economy annually. The party said reports revealed Trump had written to global pharmaceutical companies, including AstraZeneca and GSK, demanding they lower drug prices for American patients. It said the UK government had reportedly already agreed to review NHS drug pricing as part of wider UK–US trade negotiations. Welsh Liberal Democrat leader Jane Dodds MS said: 'We must stand up to Trump's bullying. This time, he is not just picking a fight; he is putting the health of people in Wales at risk. "From threatening drug price hikes to imposing tariffs on essential medicines, his tactics could lead to shortages, rising NHS costs and real harm to Welsh patients. "The UK government must stop rolling over and urgently convene a task force, in full coordination with the Welsh Government, to put an emergency plan in place. "That means preparing for stockpiling and protecting our medicine supply chains by standing up for our domestic pharmaceutical industry and the Welsh workers it employs.'


The Herald Scotland
2 hours ago
- The Herald Scotland
Will 2025 prove to be the 'year of misinterpretation'?
Even as these evidently profound events have come to pass, the catastrophic consequences once predicted have not followed. The Trump administration's initial tariff threats sent markets into a downward spiral, but they have since rocketed back, undeterred by tariffs imposed since. So far, companies have primarily absorbed the cost of tariffs, avoiding a large impact on consumers. Meanwhile, the threat of war between Israel and Iran, the spectre of which has animated decades of diplomacy, failed to generate more than mild short-term jitters in oil prices. Ultimately, oil markets fell back following a ceasefire agreement and traders shrugged off what could have precipitated regime change. The global economy marches onwards. In short, even as these risks have all materialised, none of these threats seem to have really moved the risk dials of investors and markets. As market observers, we must ask whether this was because those risks were overestimated, or if their true consequences simply have not yet been revealed. One camp might posit that 2025, so far, has proved the 'year of misinterpretation'. Ten years from now, will 2025 be seen as a minor blip in the global economy's pursuit of growth? Or, will it be perceived as the beginning of a fundamental shift in international trade and the forebearer of sustained economic decline? Depending on which path we take, the investment choices that we make today will be profoundly different. At Julius Baer, our diagnosis falls somewhere in the middle. We see a new era dawning of heightened uncertainty, limited globalisation, and fragile peace in the world's most incendiary regions. The end of the free trade consensus, the fracturing of decades-long alliances, the impact of climate change, and more, will inevitably lead to a more volatile world. That volatility has already arrived in-force this year, however, the world's largest companies have shown resilience, particularly after coming out of one of their most profitable years ever in 2024. As fundamental changes happen on a global scale, companies have so far successfully stayed nimble, adapting with the times and showing their ability to play a changing game is astonishingly robust. Read more: Of course, a discussion of the global economy cannot be separated from the American economy – after all, fears of recession have grown exponentially since Trump's re-election to the White House. Similar to the rest of the world, the US economy has slowed but ultimately pushed ahead into 2025, with the OECD predicting that it will experience GDP growth of 1.6% this year, compared to Europe's 1.0%. This 'American exceptionalism' is due in part to the strength of US companies – particularly in the tech sector, where confidence remains as to their ability to produce cash at a rate hitherto unseen in history. These enormous profits mean leading companies have not only been able to withstand the tariff storm, but have also temporarily limited the extent to which consumers have become victim. The US's corporate strength is complemented by its consumer base, which is forecast to increase its nominal spending levels by 3.7% in 2025 despite economic uncertainty. The President's One Big Beautiful Bill Act, controversial as it may be, will likely further boost spending, as the people to whom it gives the greatest benefit – the wealthiest 20% of American households – are responsible for 60% of the country's consumption. More broadly, the Act signals that the Trump administration will continue deficit spending to boost the US economy, moving away from Elon Musk's DOGE-driven cost-cutting overtures from earlier in the year. While the sustainability of this in the long-term remains in sharp focus, debt-powered cash infusions from the federal government will certainly promote US growth in the near term. So, what does all of this mean for the UK? Thus far, UK economic progress has proved uninspiring if resilient, with optimistic analysts projecting 1.2% GDP growth this year. The UK Government has been either lucky, skilful, or both to secure a trade deal with the US and avoid large-scale tariffs. But the reality is that the UK's economic destiny is largely out of the Government's control. Even as the IMF calls for the Bank of England to cut rates twice more this year, its ability to do so will be contingent both on how tariffs are rolled out and the strength of the UK labour market. Without guaranteed rate cuts or fiscal stimulus – an option equally unlikely given the Government's financial constraints – the UK will need a wave of global growth to see meaningful near-term change. Such growth will have to happen in a world that has doubtlessly become more volatile and will likely get worse. However, this does not mean that there are not plentiful attractive opportunities for investment and capital. As politics become more polarising and posturing more dramatic, it is the investor's job to look beyond the immediate uncertainty, to invest patiently, and to make decisions based off long-term trends, not short-term hysteria. Just as always, the calm, rational, long-view investor will win. Nick Lawson is an associate director at Julius Baer