Brazilian President Luiz Inacio Lula da Silva said his country would reciprocate US President Donald Trump's newly announced 50 percent tariffs on his country's exports, citing a recently passed Brazilian law that allows the government to take proportionate countermeasures, CNBC reported, quoted by BTA.
Trump said on Wednesday (local time) that the US will impose tariffs on imports from Brazil starting August 1st, partly in retaliation for the ongoing legal action against the country's former President Jair Bolsonaro.
In a letter, Trump said that the new rate – a huge increase over the 10 percent tariff that the US imposed on imports from Brazil in early April - is also a response to the "very unfair trade relations" between the two countries.
The letter to Da Silva follows nearly two dozen others that Trump has recently sent to other world leaders, dictating new high tariffs on goods they sell to the United States.
The letter to Brazil, however, goes further than the others, imposing a new tax rate on imports into the United States explicitly as punishment for a country that deals with domestic political and legal issues that Trump does not like.
Da Silva responded to the letter by saying that Brazil would respond to the tariffs in accordance with its newly enacted economic reciprocity law.
"Brazil is a sovereign country with independent institutions that will not accept being lectured by anyone," Da Silva wrote, as quoted by CNBC.
The value of the Brazilian currency, the real, fell more than 2 percent against the U.S. dollar after the statement Trump.
Trump has previously criticized Brazil for its treatment of Bolsonaro, a vocal ally of the US president who is facing trial for his role in an alleged coup aimed at overturning his 2022 election loss.
Trump called the situation an "international disgrace" in the letter, which he shared publicly on the social network "Truth Social". He denounced the Bolsonaro trial as a "witch hunt," echoing the narrative he used to describe the multiple criminal investigations he faced before winning the 2024 U.S. presidential election.
He also railed against "Brazil's insidious attacks on free elections and the fundamental freedom of speech of Americans," apparently referring to a recent ruling by Brazil's Supreme Court that social media platforms can be held liable for their users' content.
Trump also said Brazil's trade policies had caused "unsustainable trade deficits with the United States" that threatened the U.S. economy and national security.
But the United States has a $7.4 billion surplus in goods with Brazil. dollars in 2024, according to data from the Office of the U.S. Trade Representative.
In his response, Da Silva called Trump's claim of a trade deficit "false," citing U.S. government data.
Trump also wrote that the United States is launching an investigation into potential unfair trade practices by Brazil.
He said the investigation was based on "Brazil's continued attacks on U.S. companies' digital trade activities."
"Please understand that the 50 percent rate is far less than what is needed to have the level playing field that we should have with your country," Trump wrote. "And this is necessary to correct the grave injustices of the current regime".
Parts of the letter to Lula match the wording of 21 letters Trump has sent to other world leaders about tariffs since Monday.
All of these letters specify that the new general rates are separate from other "sectoral" tariffs on imports of specific products, such as steel, aluminum, and automobiles.
They all contain a preemptive warning that if countries decide to raise their own import tariffs on American goods "for any reason", the United States will increase its tariff rate by the same amount.
They all note that the United States "may consider an adjustment" if countries remove their tariff and non-tariff trade barriers.
"These rates may be adjusted up or down - depending on our relationship with your country," Trump writes in all the letters. "You will never be disappointed with the United States of America."
The recipients include major U.S. trading partners, including Japan and South Korea, as well as smaller economies, such as Moldova and Brunei.
The tariffs on the 21 countries range from 20 percent to 40 percent. They are all set to take effect on August 1, and Trump has insisted that "no extensions will be granted" to the deadline.