Brazil's President Criticizes Trump's Tariff Hike
Brazilian President Luiz Inácio Lula da Silva expressed concern over U.S. President Donald Trump's decision to raise tariffs on a wide range of products, including cars. He warned of potential harm to the American and global economies.
Lula made these remarks during his visit to Japan, where Trump's decision was met with disappointment given Japan's status as a major auto exporter and American ally. The U.S. is the biggest destination for Japanese car exports.
"I am very concerned about the behavior of the American government," Lula said. "I am concerned because free trade is being harmed and I am concerned because multilateralism is weakened."
He argued that Trump's policy of raising tariffs would not yield positive outcomes. It would raise prices for American consumers, contribute to inflation, and lead to higher interest rates that could stifle economic growth.
Lula emphasized that Trump is the president of the United States, not the world, and that "this protectionism does not help any country in the world."
Japan's Response to Trump's Tariff Hike
Japanese Prime Minister Shigeru Ishiba reiterated his desire for Japan to be exempt from the tariffs. He stated that Japan would consider all options, including countermeasures, to protect its national interests.
Ishiba and Lula agreed to strengthen partnerships between Japan and Brazil in the areas of economy, trade, and security. This collaboration comes as Trump's tariff threats have triggered tensions and vows of retaliation from various countries, including Canada, Mexico, China, and Europe.
Japan's Chief Cabinet Secretary Yoshimasa Hayashi expressed regret over Trump's decision and urged an exemption for Japan.
Brazil's Potential Response to Trump's Tariff Hike
Brazil, the top steel exporter to the United States, is considering filing complaints to the World Trade Organization and imposing reciprocal tariffs. However, Brazil is not a top target for Trump's trade retaliation as the U.S. exports more than it imports from Brazil.
The U.S. trade surplus with Brazil was $7.4 billion in 2024, a 32% increase from the previous year. Brazil's top exports to the U.S. were petroleum and iron and steel, while its biggest imports from the U.S. were crude and refined oil, gas turbines, aircraft, chemical, and machinery.