Tariff Row: Brazil’s Lula Tells Trump ‘Remove 40% Extra Tariff First, Then We’ll Talk Friendship’

Tariff War: Brazilian President Luiz Inácio Lula da Silva has clearly told US President Donald Trump that if the US wants to strengthen its economic partnership with Brazil, it must remove the 40% tariff imposed on Brazilian products.

Lula conveyed this message in unambiguous terms during a 30-minute phone conversation with the two leaders on Monday. According to a statement issued by the Brazilian President's office, the two leaders exchanged phone numbers and agreed to continue dialogue. During the conversation, Lula also invited Trump to participate in the upcoming climate summit in Belém.

US Trade Surplus with Brazil

The US administration imposed a new 40% tariff on Brazilian exports in July. This move was in addition to the existing 10% tariff, bringing the total tax to 50%. Lula told Trump that this decision is unjust, as Brazil is one of the three G20 countries with which the US has a trade surplus. He reminded Trump that Brazil has purchased significantly more goods from the US, while American exporters have benefited from this.

Friendship on Equal Terms

In his conversation with Trump, Lula stated, "Brazil supports fair trade. We want a partnership, but the condition is that we receive equal treatment. If the 40% tariff is not removed, our industries and farmers will be severely affected." Lula's statement is not only an economic but also a political message. He wants to show that while Brazil remains an ally of the US, it will not compromise its economic sovereignty.