6 days ago
'Can't depend on dollar': Brazil President Lula says 'Brics should test a new currency' amid trade tensions with US
Synopsis
Amid escalating trade tensions with the U.S., Brazilian President Lula da Silva champions a BRICS trade currency to reduce reliance on the dollar. Despite Trump's tariff threats and refusal to engage directly, Lula seeks support from leaders like Xi Jinping and Modi. Brazil plans WTO action against U.S. tariffs while remaining open to diplomatic resolutions, emphasizing dialogue over economic retaliation.
BRICS leaders with inset of commemorative currency note President Luiz Inácio Lula da Silva has reiterated his support for a BRICS trade currency, saying Brazil "cannot depend on the dollar" and must remain open to testing alternatives for trade among member nations. In social media videos circulating widely, Lula clarified, 'We do not want to mess with the dollar, it's an important currency. But we can have a currency for trade in BRICS — it's an idea we have to test.' He added, 'Not seeking to undermine the dollar, [we] recognize it as an important currency,' while maintaining that BRICS should be open to 'testing a common trade currency.'Amid Trump's tariff war, the Brazilian president has again brought up the issue of BRICS countries having their own currency. Lula has also proposed that BRICS nations begin discussions on creating such a shared trade currency, arguing it would reduce global dependence on the U.S. dollar. 'We need to test it,' Lula said. 'If it fails, then I was wrong — but someone would have to convince me that I was wrong.' His remarks come amid escalating trade tensions with the United States.
The United States has imposed a 50% tariff on Brazilian goods, adding to an existing 10%, prompting Lula to announce that Brazil will seek recourse through the World Trade Organization (WTO) and other formal diplomatic channels. He also confirmed he will not engage directly with U.S. President Donald Trump in light of the January 2025, Trump publicly threatened a 100% tariff on BRICS countries if they pursued the creation of a shared currency. 'Any attempt by BRICS to form a trade currency that bypasses the dollar will be met with full-scale tariffs. 100% — no exceptions,' he said during a campaign early July, Trump reinforced his administration's hardline stance via social media: 'Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% tariff. There will be no exceptions to this policy.'
Lula emphasized Brazil's broader aim of reducing its dependency on the dollar. 'We want independence in our policies, we want freer trade, and things are progressing wonderfully. We are even discussing the possibility of creating our own currency, or perhaps using each country's national currency for trade, without relying on the dollar,' he a televised interview with Jornal da Record TV, Lula said Trump's actions reflect discontent over BRICS' rising global influence. 'I am not obliged to purchase dollars to trade with countries like Venezuela, Bolivia, Chile, Sweden, the European Union, or China. We can use our own currencies. Why should I be tied to the dollar, a currency I do not control? It's the United States that prints dollars, not us.'Rejecting Trump's earlier offer to speak 'anytime,' Lula said, 'He does not want to talk.' Instead, the Brazilian president stated, 'I will call Xi Jinping, I will call Prime Minister Modi, I won't call Putin, because he can't travel now, but I will call many Presidents.'Despite ongoing tensions, Lula confirmed that Trump will still receive an invitation to COP30, the United Nations climate summit set to take place in Belém, Pará this 50% tariff affects a wide range of Brazilian exports, though exemptions include civil aircraft and parts, aluminum, tin, wood pulp, energy products, and fertilizers. Trump said the decision was in response to what he called a 'witch hunt' against former Brazilian President Jair Bolsonaro, who is currently facing charges related to an alleged coup attempt following the 2022 the move 'the most regrettable' moment in Brazil, U.S. relations, Lula reaffirmed Brazil's intention to strengthen trade ties with BRICS nations and other global Lula has ruled out direct talks with Trump, he emphasized that Brazil remains open to negotiations through international bodies. 'In 2025, we will resort to all possible measures, starting with the WTO, to defend our interests,' he at the White House, Trump said Lula was welcome to contact him at any time and expressed admiration for the Brazilian people. 'The people running Brazil did the wrong thing,' he Finance Minister Fernando Haddad welcomed the tone of Trump's remarks, describing them as 'great,' and noted that Lula could be open to talks if approached through appropriate diplomatic called for differences to be resolved through dialogue rather than economic retaliation. 'If he [Trump] had a disagreement, the right thing to do would be to raise the issue at a G20 meeting, have a civilized discussion, convince us, and talk it through. What he can't do is act like he owns everyone else,' he said.
