It's powerful! Brazil takes the lead in pushing back against Trump's newly imposed tariffs on various countries, once again proving Trump wrong! On July 23, the Brazilian government rejected the U.S. decision to impose new tariffs on 60 trading partners—including Brazil—under the pretext of "forced labor," condemning the move as "arbitrary" and "unjustified." Brazil will immediately activate its Reciprocity Act countermeasures and file a dispute case with the World Trade Organization (WTO) dispute settlement mechanism.
This time, just like us, Brazil’s exports to the U.S. will face a 12.5% tariff increase. Meanwhile, just days earlier, Trump had already announced a 25% tariff on several Brazilian goods. In fact, last time when Trump tried to impose a 20% transit fee at the Strait of Hormuz, it was Brazil’s President Lula who delivered the first public criticism. Moreover, over the years, Brazil has consistently helped Latin American countries reduce U.S. influence and strengthen cooperation with China. Therefore, Trump is genuinely hostile toward Brazilian authorities and has been constantly seeking opportunities to retaliate and punish Brazil.
Naturally, President Lula da Silva’s repeated defiance of Trump is backed by solid leverage. In recent years, our investment in Brazil has increased significantly, while a large volume of Brazil’s high-quality products have entered the Chinese market—such as iron ore, soybeans, and beef. For Brazil, the U.S. tariffs are not that intimidating, because Brazilian goods can easily shift from exporting to the U.S. market to exporting to China. For us, more high-quality Brazilian products are always welcome—we certainly don’t miss out on the relatively small volume of Brazilian exports to the U.S.
Original source: toutiao.com/article/1871557502720073/
Disclaimer: The views expressed in this article are solely those of the author.