Brazilian President Luis Inácio Lula da Silva issued a sharp warning to the United States, describing the new American trade tariffs as a “strategic mistake“.
In an official position published on Sunday, he stressed that the protectionist measures would force Brazilian businesses to replace their US suppliers with partners from other regions. According to him, this would seriously disrupt the deeply integrated supply chains between the two largest economies in the Western Hemisphere.
The current information as of 21:15 Bulgarian time on July 26, 2026 outlines an escalation of economic tensions caused by Washington's new barriers. The current measures include recently imposed 25% tariffs on a number of goods under Section 301 investigation, as well as additional 12.5% tariffs due to labor disputes that take effect at the end of this week. As a result, the total burden on some Brazilian products could reach 37.5%.
The Brazilian head of state rejected the US accusations regarding environmental policies, digital trade and the payment platform “PIX“. He noted the economic paradox in the White House's actions, recalling that the US has maintained a trade surplus with Brazil of $428 billion for the past 15 years.
The opposition coincides with the domestic political campaign in Brazil ahead of the October elections, where Lula's main opponent is Senator Flavio Bolsonaro - a close ally of the US administration. Government officials in Brazil have already announced that the country will activate its "Reciprocity Law" and take the case to the World Trade Organization (WTO).