Brazilian President Luiz Inácio Lula da Silva stated on Thursday that if US President Donald Trump increases tariffs on Brazilian goods, Brazil will respond in kind—though he expressed a preference for improving relations over engaging in a trade war.
Brazil is among the countries Trump has threatened with higher tariffs.
“It’s very simple: if he taxes Brazilian products, Brazil will retaliate by taxing products exported from the United States,” Lula, 79, said during a press conference.
Lula, who is currently serving his third term, stressed that he would rather “improve our relationship with the United States” and strengthen trade ties with Brazil’s second-largest trading partner, after China.
“I want to respect the United States, and for Trump to respect Brazil. That’s all,” he added.
Referencing Trump’s comments about wanting to take back control of the Panama Canal or Greenland, Lula emphasized, “He just has to respect the sovereignty of other countries.”
Lula also highlighted the global threats to democracy, saying, “For me, democracy is the most important thing in humanity right now. Either we keep democracy working, or we will have states more authoritarian than Hitler and fascism.”
In light of Brazil’s upcoming role in hosting the COP30 UN climate talks in Belem, he criticized Trump’s withdrawal from the Paris climate accord, calling it “a step back for human civilization.” Lula expressed concerns over the failure of wealthy nations to meet previous promises to assist developing countries with the impacts of climate change. “We want something very real so that we can know if we are serious or not about the climate issue,” he said.
– Seizing back the narrative –
Lula held a comprehensive press conference in Brasília, encouraging journalists to ask tough questions as his government works to reclaim the narrative amid a wave of disinformation.
After undergoing emergency surgery in December to stop a brain bleed linked to a fall, Lula assured that he was fully recovered and had “the energy of a 30-year-old.”
With less than two years remaining in his term, Lula’s approval rating has dropped to 47 percent, according to a Quaest poll, with particular declines among his key supporters in the low-income northeast.
Lula dismissed concerns over opinion polls, stating that he was “not worried” about public sentiment and brushing aside worries about high interest rates and public debt.
As anticipated, the central bank raised the key interest rate by one point to 13.25 percent on Wednesday, despite Lula’s previous criticism of such hikes and his appointment of a new bank president.
“The president of the central bank cannot make a U-turn in a stormy sea,” Lula said, expressing confidence in new central bank president Gabriel Galipolo, who would have “autonomy to do whatever is necessary.”
Lula also sought to ease concerns over government efforts to reduce food prices, reaffirming his commitment to “fiscal responsibility.”
The government is considering reducing import tariffs on certain goods and working on a plan with banks for “the largest credit program in the history of this country,” aimed at increasing production.
Concerns about Brazil’s ability to control public spending led to a sharp decline in the real against the dollar in December.
