Trump's tariff threat to Brazil is a gift to Lula
Brazilian President Luiz Inacio 'Lula' da Silva responded swiftly and unequivocally: 'Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,' he declared, adding that Brazil's judiciary is autonomous and not subject to interference or threat. Under Brazilian law, digital platforms are obligated to monitor and remove content that incites violence or undermines democratic institutions, and they may be held legally accountable when they fail to do so.
While a 50 percent tariff on Brazilian exports might appear economically devastating, it could in fact become a strategic turning point – and even a blessing in disguise. Brazil has both the resilience and the diplomatic tools to weather this storm and emerge stronger.
The United States is one of Brazil's largest trading partners, typically ranking second after China – or third if the European Union is considered as a single bloc. Brazilian exports to the US include industrial goods such as Embraer aircraft, iron and steel, crude oil, coffee and semiprecious stones, alongside agricultural products like beef, orange juice, eggs and tobacco. In return, Brazil imports large quantities of US-manufactured goods, including machinery, electronics, medical equipment, chemicals and refined petroleum. Notably, the US has maintained a trade surplus with Brazil for the past five years.
Should Washington proceed with the 50 percent tariffs, Brasília has several retaliatory options under its Economic Reciprocity Law. These include raising import tariffs on US goods, suspending clauses in bilateral trade agreements, and – in exceptional cases such as this – withholding recognition of US patents or suspending royalty payments to American companies. The impact on US consumers could be immediate and tangible, with breakfast staples like coffee, eggs and orange juice spiking in price.
Brazil is not without friends or alternatives. The country has already been deepening ties with fellow BRICS members (China, India, Russia, South Africa) and newer partners in the bloc. This dispute only strengthens the case for accelerating such integration. Diversifying export markets and embracing South-South cooperation isn't just ideological; it's economically pragmatic.
Closer to home, the tension presents an opportunity to reinvigorate South American integration. The long-held regional dream of enhanced collaboration – from trade to infrastructure – could gain new momentum as Brazil reassesses its global alignments. This realignment could breathe life into stalled Mercosur bloc initiatives and reduce dependence on an increasingly erratic relationship with the US.
Ironically, Trump's aggressive move may weaken his ideological allies in Brazil. While Bolsonaro supporters (including members of his family) have praised the US president's intervention, they may be missing its broader political consequences. Trump's past influence abroad has often backfired, with right-wing candidates in countries like Canada and Australia paying the price. A similar outcome in Brazil is not unthinkable. Lula, who has consistently positioned himself as a pragmatic, diplomatic and stabilising global figure, may gain political ground from this latest episode. His defence of sovereignty, democratic institutions and balanced international relations could resonate more deeply with Brazilian voters ahead of next year's elections.
This moment need not be seen as a crisis. Rather, it presents a pivotal opportunity for Brazil to assert itself as a sovereign economic power – less reliant on Washington and more engaged with an emerging multipolar global order. If Lula navigates it wisely, Trump's latest provocation may deliver not only a diplomatic win but a significant boost to his re-election prospects. In attempting to punish Brazil, Trump may well have undercut both his foreign policy ambitions and his ideological allies abroad.
The views expressed in this article are the author's own and do not necessarily reflect Al Jazeera's editorial stance.
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