Lula Rejects 'Humiliation', Weighs Options Against Trump Tariffs

Lula Refuses Dialogue with Trump, Explores Responses to US Tariffs

Following former US President Donald Trump's announcement of increasing tariffs on Brazilian goods imported into the United States to 50%, Brazilian President Luiz Inacio Lula da Silva stated his unwillingness to engage in direct dialogue with Trump, describing such a conversation as potentially “humiliating”. In an exclusive interview with Reuters, Lula clarified that Brazil will not announce reciprocal tariffs and that his government will not abandon cabinet-level negotiations. However, he emphasized that he is in no hurry to call the White House. He added, “The day my intuition tells me that Trump is ready to talk, I will not hesitate to call him. But my intuition now is that he does not want to talk. I will not allow myself to be humiliated.” Despite Brazilian exports facing one of the highest tariffs imposed by the Trump administration, the new US trade barriers do not appear likely to destabilize Latin America's largest economy, giving Lula greater strength to confront Trump compared to most Western leaders.

Strained Relations and Impact of American Intervention

Lula pointed out that US-Brazilian relations had deteriorated to their lowest point in 200 years after Trump linked the new tariffs to demands to stop prosecuting former right-wing President Jair Bolsonaro, who is accused of plotting to overturn the results of the 2022 election. Lula asserted that the Brazilian Supreme Court, which is hearing Bolsonaro's case, “does not care what Trump says, and should not care,” adding that Bolsonaro should also be tried for inciting Trump's intervention, describing the former right-wing president as a “traitor.” Lula added, “We have forgiven the United States for its intervention in the 1964 coup.” He began his political career as a union leader, protesting against the US-backed military government that was established after the overthrow of an elected president. He continued, “But this time it is not a simple intervention. The American president believes he can dictate to a sovereign country like Brazil. This is unacceptable.”

Potential Future Meetings and Response Options

The Brazilian president mentioned that he has no personal grudges against Trump and indicated that they might meet next month at the United Nations or at the United Nations Climate Conference in November. However, he noted that Trump has a history of belittling White House visitors, such as South African President Cyril Ramaphosa and Ukrainian President Volodymyr Zelensky. Lula said, “What Trump did to Zelensky is humiliating. This is not normal. He also humiliated Ramaphosa. A head of state should not humiliate another head of state. I respect everyone and ask to be respected.” Lula explained that his ministers are finding it difficult to open a dialogue with their American counterparts, so the Brazilian government is focusing on domestic policies to mitigate the economic impact of US tariffs, while maintaining “fiscal responsibility.” He declined to elaborate on the proposed corporate support measures, which are expected to include credit lines and other export assistance. Lula also revealed his intention to contact the leaders of the BRICS group (BRICS), starting with India and China, to discuss the possibility of taking joint action in response to US tariffs. He added, “There is currently no coordinated action on the part of the BRICS group, but there will be.” He likened multilateral action to the strength of collective bargaining during his time in the union. In addition, he indicated that Brazil is considering filing a collective complaint with the World Trade Organization (WTO) with other countries.

Focus on Domestic Policies and Strategic Resources

Lula concluded by saying, “I was born to negotiate.” He grew up in a poor family, rose through the ranks of unions, served as president for two terms from 2003 to 2010, and then returned to politics after defeating the incumbent President Bolsonaro in the 2022 election. He emphasized that he is in no hurry to reach an agreement or retaliate against US tariffs, stressing that “we must be very careful.” When asked about counter-measures against American companies (such as taxing large technology companies), Lula said that his government is studying how to tax American companies to put Brazilian companies on an equal footing with them. Lula also indicated that he plans to develop a new national policy for Brazil's strategic mineral resources, considering it a matter of “national sovereignty,” to break Brazil's history of exporting minerals with low added value.

Analyzing the Situation: A Balanced Perspective

The trade tensions between Brazil and the US highlight the complexities of international trade relations. While tariffs can protect domestic industries, they can also lead to higher prices for consumers and disrupt supply chains. Lula's approach of seeking multilateral solutions through BRICS and the WTO demonstrates a strategy to leverage collective bargaining power and ensure fair trade practices. The focus on developing domestic policies and strategic resources aims to strengthen Brazil's economic independence and resilience in the face of external pressures. It is important to analyze such situations from a balanced perspective, considering the potential benefits and drawbacks of different trade policies for all stakeholders involved.