[By Guancha Observer Network, Liu Chenghui] US President Trump's "reciprocal tariff" has triggered a global wave of criticism. Brazilian President Lula said on April 8 that global trade rules cannot be dictated by one country alone, and Trump's tariff policy violates the principle of multilateralism and is destined to fail. Brazil will make decisions based on its own circumstances and is capable of responding to the impact brought by tariffs.
According to reports from Reuters and CNN Brazil, Lula said at an event in São Paulo: "I have seen Trump's tariff policy. I don't know what you think, but I believe this won't work."
Lula described Trump's significant increase in tariffs as an attempt to overturn the global order and impose "rules for the world" through policies that undermine multilateralism.
Lula recalled the advocacy of free trade and opposition to protectionism by Reagan and Thatcher, leaders of the US and UK in the 1980s.
He said: "Suddenly, someone thinks he can set rules for everything happening in the world. No one can steer a overloaded transatlantic giant ship like this. This won't work."
Lula added that Trump's decision to impose "reciprocal tariffs" on other countries and regions ignores the reality of a multipolar world. "There are nearly 200 countries in the world, each wanting sovereignty and hoping for a harmonious process. The most important thing now is multilateralism."
Lula has previously criticized Trump's approach multiple times. In an interview on February 20th, he directly pointed out that Trump wanted to be "the emperor of the world," and urged Trump to respect the sovereignty of other countries.
"He tries to interfere with all countries and public policies." Lula urged Trump to "recognize the need to respect the sovereignty of every country." He reiterated that the US is an important commercial partner for Brazil and hopes that the US will make more friendly gestures and stop protectionist policies.
On April 8th, São Paulo, Brazil, Lula spoke at the opening ceremony of the International Construction Fair (FEICON). Visual China
Data from the Office of the US Trade Representative shows that the US is Brazil's second largest trading partner. Last year, the total volume of bilateral commodity trade reached $92 billion, with US exports to Brazil amounting to $49.7 billion and imports totaling $42.3 billion.
Last month, Trump announced that starting March 12th, a 25% tariff would be imposed on steel and aluminum imported into the United States. The US is the main export market for Brazilian steel and aluminum products. Data shows that in 2024, Brazil exported steel and iron ore worth $5.7 billion and aluminum products worth $267 million to the US.
Previously, Brazilian steel and aluminum exports enjoyed partial exemptions under quota systems. Once these exemptions are canceled, it means that 3.4 million tons of steel exported annually to the US could face heavy taxes.
On March 27th, during his visit to Japan, Lula stated that Trump's tariff measures would pose risks to the US economy, vowing to file a lawsuit against the US tariffs on Brazilian steel at the World Trade Organization (WTO).
"This (tariff increase) will raise commodity prices and may trigger inflation that he hasn't yet realized. Protectionism benefits no country in the world." Lula said at a press conference, "We have two things to do. First, appeal to the WTO; we will do so. The other is to impose higher tariffs on American products. We cannot just remain silent."
Trump signed an executive order imposing "reciprocal tariffs" on March 2nd, with a rate of 10% for Brazil.
Lula responded on March 3rd, stating that Brazil will take "all necessary measures" to protect its enterprises and workers. The Brazilian Congress passed an economic reciprocity bill on March 2nd, authorizing the government to take measures to counter US trade barriers. The Ministry of Foreign Affairs issued a statement saying that Brazil will evaluate all possible actions to ensure the "reciprocity" of bilateral trade, including resorting to the WTO.
US Trade Representative Greer said on April 8th that the "reciprocal tariff" will come into effect as scheduled on April 9th. Greer stated that there was no specific timeline for negotiations between Trump and other countries regarding tariffs. Trump has clearly indicated that there will be no recent tariff exemptions.
On April 8th, due to panic caused by Trump's tariff policies, the S&P 500 Index and the Dow Jones Index fell for four consecutive trading days, with the S&P 500 Index nearing the bear market threshold.
By the close of trading, the Dow Jones Index fell 0.84%, dropping from its high by 2,300 points, closing at 37,645.59 points. The Nasdaq Index fell 2.15%, closing at 15,267.91 points. The S&P 500 Index reversed its early gains of 4.1% and closed down 1.57% at 4,982.77 points, falling below 5,000 points for the first time since last April.
This article is an exclusive contribution by Guancha Observer Network and cannot be reprinted without permission.
Original article: https://www.toutiao.com/article/7491169691856142888/
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