Brazilian President Luiz Inácio Lula da Silva announced Friday that his government has initiated a process under an economic reciprocity law, targeting U.S.-imposed tariffs. The move, according to Lula, is intended to demonstrate that Brazil demands respect in international trade.
In July, the U.S. under the Trump administration implemented tariffs on a range of Brazilian exports, with some duties reaching 37.5%. The U.S. cited unfair trade practices, accusations that Lula has denied, characterizing them as politically motivated ahead of Brazil's October election.
Lula, who is seeking reelection against Senator Flávio Bolsonaro, an ally of former U.S. President Donald Trump, has stated that the reciprocity law was invoked "to show that we are not to be taken lightly."
"We respect ourselves. I am very calm knowing what could happen, and I am prepared to debate the defense of Brazil anywhere in the world," Lula said in an interview with Brazilian podcasters.
Brazil's Foreign Ministry indicated on Thursday evening that it is requesting diplomatic consultations with its U.S. counterparts regarding the issue. The ministry stated this aims to underscore Lula's commitment to prioritizing dialogue and negotiation in international relations.
The initiation of this process does not automatically signify that Brazil will implement retaliatory tariffs against the U.S. "I don’t want any fight with the United States," Lula said Friday. "Unfortunately, they are spreading falsehoods."
This trade dispute has been accompanied by retaliatory visa actions. Earlier in the month, the U.S. State Department revoked the visa of Brazil’s ambassador to Washington. This action followed Brazil's denial of visas to two American diplomats who had sought to visit Brazil prior to the October election.
Additionally, the U.S. government has accused Brazil of delaying approval for Trump’s nominee for ambassador in Brasilia. Brazilian officials contend that the U.S. did not follow diplomatic protocol by failing to seek the Brazilian government's approval before submitting the nomination to Congress.
U.S. officials, speaking anonymously, have suggested that the State Department’s limited response of revoking the ambassador's visa, rather than ordering her expulsion, was a deliberate tactic to provide Lula an opportunity to de-escalate. These officials also indicated that the U.S. is prepared to respond swiftly should Brazil's government choose to escalate the matter further, noting that declaring the ambassador persona non grata and expelling her would be a potential next step.