Brazil Pushes Back on 50% Tariff Threat; Sen. Kaine Says He'll Try to Stop Hike
The Brazilian president hit back at President Donald Trump via X late July 9, after Trump said Brazilian goods should face 50% tariffs over the country's censorship of X and other American platforms, and partly because of the trial of former Brazilian president Jair Bolsonaro for an attempt to stay in power when the current president won election.
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According to a translation by X's AI model, President Luiz Inácio Lula da Silva, who goes by "Lula," said he wished to emphasize "Brazil is a sovereign country with independent institutions that will not accept being tutored by anyone."
He said the trial for "those who planned the coup d'etat" will not be undermined or interfered with or threatened. "In the context of digital platforms, Brazilian society rejects content involving hate, racism, child pornography, scams, fraud, and speech against human rights and democratic freedom. In Brazil, freedom of expression is not to be confused with aggression or violent practices."
And, with regard to the lack of reciprocity in trade -- and trade deficits -- that Trump also identified as a reason to hike tariffs, "Statistics from the United States government itself confirm a surplus of that country in the trade of goods and services with Brazil in the amount of 410 billion dollars over the last 15 years."
He said he would defend the interests of Brazil, and respond to tariff increases.
The threat of higher tariffs on Brazil also drew the ire of Democrats in Congress. The top Democrat on the House Ways and Means Trade Subcommittee, Linda Sanchez, called the threat "a clear abuse of power," and corrupt.
"It’s clear that he isn’t using tariffs to address unfair trade practices, he’s abusing them to settle political scores and reward those who support or benefit him," she said.
Sen. Tim Kaine, D-Va., who spearheaded the effort to stop tariffs Trump levied on Canada over complaints of migration and drug smuggling by way of a bill that passed the Senate, said he will work to block the Brazil tariffs, too.
He sent out a statement July 10 that said in part: "The last thing Americans want is another trade war that will raise prices and throw businesses into uncertainty -- and for what? To punish Brazil for taking steps to hold President Trump’s disgraced friend accountable for trying to overthrow its government?"
He added, "Using tariffs to interfere with foreign judicial proceedings takes abuse of power to a whole new level."
He suggested that Trump is so upset about the trial because of its echoes of the Jan. 6 riot in Congress that also was intended to keep Trump in power after he lost his re-election bid in 2020.
The American Chamber of Commerce in Brazil said that a 50% tariff would severely impact integrated supply chains between Brazil and the U.S.
They also noted that Brazil consistently imports more from the U.S. than it exports to the U.S.
"Amcham Brazil -- which has worked for over a century to strengthen economic ties between the two countries -- urges both governments to urgently resume constructive dialogue," the group said. "We reiterate the importance of a negotiated solution based on rationality, predictability, and stability, to safeguard economic ties and promote shared prosperity."