Latest news with #EconomicReciprocityLaw
Time of India
3 days ago
- Business
- Time of India
‘If he charges 50%, we will charge 50%': Brazil vows retaliatory action if negotiations fail; what is the reciprocity law?
Brazilian President Lula da Silva vowed to retaliate if negotiations with US fail Brazilian President Luiz Inácio Lula da Silva has responded to US President Donald Trump's Wednesday announcement on his plans to implement a 50% tariff on Brazilian imports. Trump's letter addressed to President Luiz Inácio Lula da Silva stated the tariffs would commence on August 1, in a bid to provide "Level Playing Field' while lashing out at the current Brazilian government for unjust criminal trial against their former President Jair Bolsonaro. Lula said he will be forced to trigger Brazil's economic reciprocity law, approved by Congress, if the US fails to negotiate. He said, 'If there's no negotiation, the reciprocity law will be put to work. If he charges 50 (% tariffs) from us, we will charge 50 from them,' reported AP, citing Brazilian media outlets. What is Brazil's Economic Reciprocity Law? Signed by President Luiz Inácio Lula da Silva on April 14 this year, Brazil's 'Economic Reciprocity Law,' allows Brazil to suspend trade, investment, and intellectual property concessions in response to unilateral measures by other countries or blocs that harm its competitiveness. The law is a strategic response by Brazil to address tariffs introduced by the Trump administration against multiple countries. Lula posted in a tweet on X, 'The Brazilian people must be respected. Brazilian justice must be respected. We are a great, sovereign country with a historic tradition of diplomacy with all nations. Brazil will adopt the necessary measures to protect its people and its companies.' Trump publicly opposed the criminal proceedings against Bolsonaro on Monday as well, concerning the former president's attempts to retain power following his defeat in Brazil's 2022 election. Lula responded decisively, telling reporters on Monday, "I think it's very wrong and very irresponsible for a president to be threatening others on social media. People have to learn that respect is a good thing." He further remarked about Trump, "He needs to know that the world has changed. We don't want an emperor." Lula's remarks heighten the risk of a potential tariff war between the two nations, with Trump pledging a strong retaliatory response to any punitive tariffs imposed on the US.
Qatar Tribune
4 days ago
- Business
- Qatar Tribune
Trump fires off more tariff letters, threatens Brazil with 50% levy
DPA Washington US President Donald Trump on Wednesday sent a barrage of letters to eight more countries dictating steep new tariff rates as of August 1, including a 50% levy on goods from Brazil. Trump posted the two-page letters - addressed to the leaders of the Philippines, Brunei, Moldova, Algeria, Iraq, Libya, Sri Lanka and Brazil - on his Truth Social platform. The latest batch comes two days after he sent letters to 14 countries, including key allies Japan and South Korea, telling them to expect higher tariffs unless new trade deals can be struck. Algeria, Libya, Iraq and Sri Lanka face tariff rates of 30%, while Brunei and Moldova were threatened with 25% and the Philippines with 20%. Trump told Brazilian President Luiz Inácio Lula da Silva to expect a 50% rate due to the treatment of former far-right president Jair Bolsonaro, who is standing trial for plotting to overturn the 2022 election results and stage a coup. Trump called the criminal charges against the firebrand nationalist 'an international disgrace.' 'This Trial should not be taking place,' Trump wrote in the letter. 'It is a Witch Hunt that should end IMMEDIATELY!' In a statement, Lula said Brazil was a sovereign nation with independent institutions. Charges against Bolsonaro were exclusively under the jurisdiction of Brazil's Judicial Branch and are 'not subject to any interference or threats that could compromise the independence of national institutions,' Lula said. 'Sovereignty, respect and the unwavering defence of the interests of the Brazilian people are the values that guide our relationship with the world.' Any increase in tariffs by the US would 'be addressed in accordance with Brazil's Economic Reciprocity Law,' Lula said. He rejected Trump's claim regarding a US trade deficit with Brazil. 'Statistics from the US government itself show a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years.' Trump's tariff blitz Trump has been rolling out new tariff rules for goods entering the US since Monday, when he also extended a 90-day pause on his so-called reciprocal tariffs first announced on April 2. The tariffs have sent heads spinning in corporate boardrooms and foreign capitals. Investors, however, seem to be taking the news in their stride as US stocks continue to push higher. Trump said on Tuesday he will stick to his August 1 deadline, writing on Truth Social: 'No extensions will be granted.'
The Hill
4 days ago
- Business
- The Hill
Brazil's president warns of retaliation after Trump unveils 50 percent tariffs
Brazilian President Luiz Inácio Lula da Silva warned on Wednesday that his government is prepared to retaliate after President Trump announced plans to impose 50 percent tariffs on goods imported from his country. In a statement posted to the social platform X, the Brazilian leader pushed back on 'inaccurate' claims of a U.S. trade deficit in its commercial relationship with Brazil, saying, 'Statistics from the U.S. government itself show a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years.' 'Therefore, any unilateral tariff increases will be addressed in accordance with Brazil's Economic Reciprocity Law,' Lula continued in the statement. 'Sovereignty, respect and the unwavering defense of the interests of the Brazilian people are the values that guide our relationship with the world,' he added. The Economic Reciprocity Law was signed into law on April 14, shortly after Trump announced his sweeping tariffs on numerous countries. The government cited Trump's tariffs as the impetus for the law. The law authorizes the legislative branch to 'adopt countermeasures in the form of restrictions to the importation of goods and services or measures to suspend concessions in the areas of trade, investments, and obligations related to intellectual property rights, as well as measures to suspend other obligations foreseen in any of the country's trade agreements.' Lula's statement comes after Trump announced on Wednesday the 50 percent tariff on all goods from Brazil, citing the prosecution of former President Jair Bolsonaro over an alleged plot to remain in power after losing an election. Trump, who has criticized Brazil's treatment of Bolsonaro in recent days, said in a letter to Lula that the new tariffs would take effect on Aug. 1 and are 'due in part to Brazil's insidious attacks on Free Elections and the fundamental Free Speech Rights of Americans.' Trump also cited Brazil's 'Tariff, and Non-Tariff, Policies and Trade Barriers.' 'The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace. This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!' Trump wrote in the letter, which was posted to the president's Truth Social platform. Lula, in his statement late Wednesday, defended the independence of his country's institutions, saying, 'Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage.' 'The judicial proceedings against those responsible for planning the coup d'état fall exclusively under the jurisdiction of Brazil's Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions,' Lula continued. Lula also warned that digital companies must reject 'hateful content' and anti-democratic speech on their platforms if they want to continue operating in Brazil. 'In the context of digital platforms, Brazilian society rejects hateful content, racism, child pornography, scams, fraud, and speeches against human rights and democratic freedom,' he wrote. 'In Brazil, freedom of expression must not be confused with aggression or violent practices. All companies—whether domestic or foreign—must comply with Brazilian law in order to operate within our territory.'
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Business Standard
4 days ago
- Politics
- Business Standard
'Brazil will not accept tutelage': President Lula as Trump slaps 50% tariff
Brazilian President Luiz Inácio Lula da Silva condemns Donald Trump's 50% import tariff and rejects US interference in Bolsonaro trial New Delhi Brazilian President Luiz Inácio Lula da Silva on Thursday denounced US President Donald Trump's sudden move to impose a 50 per cent tariff on all Brazilian imports, calling it an 'unacceptable' act of interference and a threat to Brazil's sovereignty and judicial independence. Trump's decision, announced on Wednesday (Washington time) through an official letter to Lula, referred to the ongoing prosecution of former president Jair Bolsonaro as an 'international disgrace'. He called Bolsonaro a 'Highly Respected Leader' and described the case as a ' Witch Hunt that should end immediately '. In response, Lula posted a statement on X, asserting: 'Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage. The judicial proceedings against those responsible for planning the coup d'état fall exclusively under the jurisdiction of Brazil's Judicial Branch and, as such, are not subject to any interference or threats.' In light of the public statement made by U.S. President Donald Trump on social media on the afternoon of Wednesday (9), it is important to highlight the following: Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage. The judicial… — Lula (@LulaOficial) July 9, 2025 Donald Trump accuses Brazil of censorship, orders investigation Trump also accused Brazil of launching 'insidious attacks on free elections' and claimed that the Brazilian Supreme Court had issued 'hundreds of secret and unlawful censorship orders' targeting US social media platforms. He instructed the US Trade Representative to launch a Section 301 investigation into these actions. He warned that if Brazil retaliated, the US would respond with even more tariffs. 'Whatever the number you choose to raise them by, will be added onto the 50 per cent that we charge,' he wrote. Lula pushed back, reaffirming that Brazilian laws target hate speech, child exploitation, fraud, and anti-democratic acts, and that all companies operating in Brazil—domestic or foreign—must comply with these laws. 'In Brazil, freedom of expression must not be confused with aggression or violent practices,' he said. Brazil rebuts Trump's trade imbalance claims Trump defended his tariff as a corrective measure against what he called a 'longstanding, and very unfair trade relationship' with Brazil. He claimed the country maintained restrictive tariff and non-tariff barriers. Lula rejected this premise, citing US government data showing a $410 billion trade surplus in America's favour over the past 15 years. 'The claim regarding a US trade deficit in its commercial relationship with Brazil is inaccurate,' Lula said. 'Any unilateral tariff increases will be addressed in accordance with Brazil's Economic Reciprocity Law.' According to US trade data for 2024, the US exported $49.7 billion worth of goods to Brazil and imported $42.3 billion, resulting in a $7.4 billion surplus. Despite this, Trump insisted: 'The 50 per cent number is far less than what is needed to have the Level Playing Field we must have with your Country.' Brazil summons US envoy, condemns Trump's remarks In the wake of the announcement, Brazil's Ministry of Foreign Affairs summoned US Ambassador Gabriel Escobar for clarification. The government also labelled Trump's letter 'offensive and inaccurate', reaffirming that judicial matters in Brazil are not up for negotiation. Trump's threats agaisnt Brics nations The escalation comes just days after the Brics summit concluded in Rio de Janeiro, with the 10-member group criticising coercive trade practices—seen as a veiled reference to the US. Trump reacted by threatening a 10 per cent tariff on countries that align with what he described as the ' anti-America policies of Brics '. He has also proposed a —signalling a broader, more aggressive global trade strategy in his second term.
Hans India
4 days ago
- Business
- Hans India
Will not accept any form of tutelage: Brazilian Prez hits out at Trump's tariff
Brazilian President Luiz Inacio Lula da Silva on Thursday (Indian time) firmly rejected any form of foreign control in response to US President Donald Trump's announcement to impose a 50 per cent tariff on goods made in the South American country. Trump unveiled the plan in his latest tariff letter, which was shared on social media where he accused Brazil of "attacks" on US tech companies and of conducting a "witch hunt" against former Brazilian President Jair Bolsonaro, who is facing prosecution over his alleged role in a plot to overturn the 2022 election. "In light of the public statement made by US President Donald Trump on social media on the afternoon of Wednesday, it is important to highlight the following: Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage. The judicial proceedings against those responsible for planning the coup d'etat fall exclusively under the jurisdiction of Brazil's Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions," Lula said in a post on X. "In the context of digital platforms, Brazilian society rejects hateful content, racism, child pornography, scams, fraud, and speeches against human rights and democratic freedom. In Brazil, freedom of expression must not be confused with aggression or violent practices. All companies -- whether domestic or foreign -- must comply with Brazilian law in order to operate within our territory," the post added. According to the Brazilian President, the claim regarding a US trade deficit in its commercial relationship with Brazil is "inaccurate", adding that statistics from the US government itself show a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years. "Therefore, any unilateral tariff increases will be addressed in accordance with Brazil's Economic Reciprocity Law. Sovereignty, respect and the unwavering defence of the interests of the Brazilian people are the values that guide our relationship with the world," Lula emphasised.
