President Luis Inasio Lula da Silva insisted that Brazil can survive without trade with USA And he will look for other partners to replace it, a strong response to Donald Trump after the US leader’s threat to 50% against the country.
“We need to look for other partners to buy our products. Brazil’s trade with the US accounts for 1.7% of its GDP, “Lula said in an interview on RECORD TV on Thursday night (10.7.2025). ‘It’s not that we can’t to survive without the US».
The left -wing leader gave a provocative tone to his American counterpart, reiterating his position that Trump must respect Brazil’s sovereignty and that he cannot act as if other nations belong to him.
He made it clear that he had no intention of receding, saying during an interview on Globo TV that the duties match can be “endless”.
The Brazilian also said that countries such as his own are not obliged to continue using the dollar for their transactions, repeating the observations he made at the BRICS Summit last weekend in Rio de Janeiro, who, as he admitted, “may have been”.
«We are interested in creating a commercial coin among other countries“Lula said in the RECORD interview. “I am not obliged to buy dollars to trade with Venezuela, Bolivia, Chile, Sweden, the European Union or China. We can trade with our own coins».
Trump said on Wednesday (9.7.2025) that he would impose duties on Brazilian goods in a letter referring to the legal problems of Zaire Bolsonaru, the right -wing former president and opponent of Lula, who is facing a trial of his 20s.
The US is Brazil’s second largest trade partner after China. Bloomberg Economics estimates that a 50% duty would be in danger of hitting Brazil’s economy by 1%. Duties could cause a 60% reduction in the total imports of US goods from Brazil, although the South American country could divert some exports to other markets, the report said.
US duties – much higher than 10% initially announced in April – also followed the meeting of emerging BRICS market countries, where Lula and other leaders criticized the duties and military blows in Iran, even when they avoided.
Despite Lula’s observations on the dollar, the BRICS nations have not again made significant progress towards a system of cross -border payments for trade and investments they have been discussing for a decade. And Lula said Trump does not need to have concerns about the countries’ block.
Trump’s report in the case concerning Bolsonaru – called her “witch hunt” and demanded her rejection – angered Lula, who on Wednesday pledged to retaliate and accused the US of attempting to intervene in the judicial system and internal affairs.
‘There is no reason to discuss’
Government ministers supported their public statements throughout Thursday that there is no financial logic behind the duties, except political motives that leave much room for negotiations, since Lula has no power to intervene in the Bolsonar case.
Lula said on Thursday that “he would have no problem calling Trump”, but that “he must first have a reason to call.”
“He could call Brazil to talk about the measures he is about to take,” he said in an interview with Globo. “It was a complete lack of respect and I do not need to accept this lack of respect. I have nothing to discuss with Trump, it gives me no reason to talk. ”
On the contrary, Lula said he would seek to talk to businessmen from companies and sectors that would be affected by duties, specifically citing the Brazilian airline Embraer SA, orange juice producers and steelmakers.
Brazil, he said, will try to exhaust the negotiations before August 1, when the duties will come into force. But his government will not hesitate to retaliate under a new law on commercial reciprocity approved by Congress this year if the talks do not make progress.
“We will try to conduct every possible negotiation process,” Lula said in an interview with Globo. “Brazil prefers to negotiate, prefers dialogue. But as soon as the negotiations are exhausted, Brazil will enforce the Law on Reconstruction. “