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Brazil hits back at Trump with "Reciprocity Law" as US imposes 50 pc tariff, rejects "any form of tutelage" on internal matters

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Brasilia | July 10, 2025 9:14:43 AM IST
Brazilian President Luiz Inacio Lula da Silva on Wednesday (local time) issued a firm response to US President Donald Trump's announcement of a 50 per cent tariff on Brazil by invoking the country's "Economic Reciprocity Law", while asserting Brazil's sovereignty and rejecting "any form of tutelage" in what he described as Trump's attempts to interfere in the country's internal judicial affairs.

Lula's response comes in the wake of Trump's letter on Wednesday (local time), where the US President announced the imposition of a 50 per cent tariff on Brazilian imports starting August 1 and called for the cancellation of the trial of former Brazilian President Jair Bolsonaro, who is accused of conspiring in a "coup d'etat".

"In light of the public statement made by U.S. President Donald Trump on social media on the afternoon of Wednesday (9), it is important to highlight the following: Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage," Lula stated.

"The judicial proceedings against those responsible for planning the coup d'etat fall exclusively under the jurisdiction of Brazil's Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions," he added.

Lula further contested Trump's claims of trade deficits between the two nations, calling them "inaccurate" and warning that any unilateral tariff increases would be met with reciprocal measures under Brazil's Economic Reciprocity Law.

"The claim regarding a U.S. trade deficit in its commercial relationship with Brazil is inaccurate. Statistics from the U.S. government itself show a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years. Therefore, any unilateral tariff increases will be addressed in accordance with Brazil's Economic Reciprocity Law," the post read.

Lula also addressed the broader issues of digital governance and freedom of expression in Brazil, responding to Trump's allegation that Brasilia was engaging in "continued attacks on the Digital Trade activities of American Companies, as well as other unfair Trading Practices."

"In the context of digital platforms, Brazilian society rejects hateful content, racism, child pornography, scams, fraud, and speeches against human rights and democratic freedom. In Brazil, freedom of expression must not be confused with aggression or violent practices. All companies--whether domestic or foreign--must comply with Brazilian law in order to operate within our territory," Lula noted.

Trump, in his letter, further directed the United States Trade Representative, Jamieson Greer, to initiate a Section 301 Investigation of Brazil to look into the latter's trade practices in the digital services sector for unfair restriction of the US digital exports to the market.

Lula further reinforced Brazil's position as a sovereign actor on the world stage, guided by values of respect and the defence of national interests, challenging Trump's actions against the counrty.

"Sovereignty, respect and the unwavering defense of the interests of the Brazilian people are the values that guide our relationship with the world," Lula added. (ANI)

 
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