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Lula Slams US’ Brazil Tariff As ‘Unacceptable Blackmail’

The comments, made during two separate events, mark a continuation of a spat between the two leaders that escalated when the US announced a 50% tariff on Brazil last week.
Brazil
Brazil's President Luiz Inacio Lula da Silva/REUTERS/Adriano Machado/File Photo

In a strong rebuke, Brazilian President Luiz Inacio Lula da Silva on Thursday asserted that he would not accept instructions on tariffs from a foreign leader — referring to US President Donald Trump — and went on to describe the United States’ threatened import duty as “unacceptable blackmail”.

The comments, made during two separate events, mark a continuation of a spat between the two leaders that escalated when the US announced a 50% tariff on Brazil last week.

Trump attributed the tariff, set to start in August, to Brazil’s treatment of former President Jair Bolsonaro and to trade practices against US companies that he said are unfair. The tariff announcement came days after Lula called Trump an “emperor” the world does not want.

‘Gringo’

Lula and members of his cabinet have rejected the reasoning behind the tariffs and insisted on Brazil’s sovereignty, while calling for trade negotiations with the United States.

“No foreigner is going to give orders to this president,” Lula said in a speech, using the slang word ‘gringo’, which in Brazil is a common term for foreigners without the pejorative sense it carries in other parts of Latin America.

He added that Brazil would go ahead with regulation and taxation of US tech firms, telling a gathering of leftist student activists in the state of Goias that tech firms are conduits of violence and fake news disguised as freedom of expression.

Later on Thursday, during an evening TV and radio address to the nation, Lula said the defence of Brazil’s sovereignty extends to protecting itself against the actions of foreign digital platforms.


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Blackmail, False Information

During the near five-minute address, Lula said Brazil has been negotiating with the US over tariffs, and repeated that the Latin America country had sent a proposal in May.

“We expected a response, and what we received was unacceptable blackmail, in the form of threats to Brazilian institutions and false information about trade between Brazil and the United States,” Lula said.

Brasilia has been holding discussions with industry groups and companies that will be affected by the US tariff, while also readying potential retaliatory measures if talks fall through.

Foreign Minister Mauro Vieira told CNN Brasil separately on Thursday that Lula was open to talks with Trump, who had not yet met each other.

“If the circumstances are given, they will speak,” he added.

Lula, who is in his third non-consecutive term as president of Latin America’s largest economy, saw his approval ratings start to rebound after the trade spat with Trump last week.

(With inputs from Reuters)