CNN reported on July 14 that Brazilian President Lula instructed his cabinet team that negotiations with the United States must adhere to the guiding principles of "firmness" and "caution."

On July 13, a cabinet meeting in Brazil decided to include business representatives in the negotiation team.

According to internal information obtained by CNN, Lula assessed during a closed-door meeting that, based on historical experience, U.S. President Trump only respects negotiators who demonstrate firm positions. Therefore, Brazil's diplomatic and business circles must uphold national interests and not yield to pressure from the U.S. side.

Lula also emphasized that tariffs would harm the national economy, so Brazil should appropriately present its own proposals.

The Brazilian government's negotiation goals include postponing the implementation of new tariffs scheduled to take effect on August 1 by 60 to 90 days, and seeking to reduce the tariff rate from 50% to 30%, as well as setting export quotas for products such as coffee and oranges.

The United States has had a long-term trade surplus with Brazil, and the U.S. is Brazil's second-largest trading partner. According to CNN reports, in 2024, Brazil exported goods worth a total of $40.4 billion to the U.S. In the U.S. market, about one-third of the coffee comes from Brazil. More than half of the orange juice sold in the U.S. also comes from Brazil. Analysts point out that high tariffs imposed by the U.S. on Brazilian goods will increase the cost of living for American consumers.

On local time July 13, Brazil's Vice President and Minister of Development, Industry and Trade, Alckmin, said in an interview in São Paulo that the U.S. imposing tariffs "makes no sense and will harm the interests of North American consumers."

Alckmin stated that the U.S. imposing tariffs has no economic basis and is inappropriate. Brazil is considering filing a complaint with the World Trade Organization (WTO). The Brazilian federal government expects to announce countermeasures against the U.S. tariffs before local time on the 15th.

On July 13, the president of the Brazilian Federal Supreme Court, Justice Luis Roberto Barroso, published an open letter criticizing the U.S. practice of imposing a 50% tariff on Brazil, stating that the U.S. tax policy was due to "an inaccurate understanding of Brazil in recent years." This was the first time the Brazilian Federal Supreme Court spoke out after U.S. President Trump announced a 50% tariff on Brazil. Barroso also stated that the Brazilian judicial system will work with other departments to defend national interests.

On July 9, in response to the current Brazilian government's "political witch hunt" against former President Bolsonaro, U.S. President Trump publicly wrote a letter to Brazilian President Lula, announcing that the U.S. would raise the tariff on Brazilian imports from 10% to 50% on August 1.

On the same day, Lula publicly stated that Brazil would not accept any external forces' control and that Brazil would take countermeasures.

On the 10th, Lula told Record TV in an interview that even without trade with the U.S., Brazil could survive and would seek other trade partners to replace it. He also announced that the Brazilian government would formally file a complaint with the World Trade Organization (WTO) regarding the U.S.'s latest decision to impose high tariffs. "There is no doubt that we will first try to negotiate. But if negotiations fail, the Economic Reciprocity Act will be implemented. If he imposes a 50% tax on us, we will impose a 50% tax on him."

Lula also emphasized that countries like Brazil are not obligated to continue using the dollar for trade. He stated that leaders of countries should seek to reduce their reliance on the dollar in international trade and reiterated his speech at the BRICS summit: "We have the willingness to create a currency for trade with other countries. I am not obligated to trade with Venezuela, Bolivia, Chile, Sweden, the EU or China in dollars. We can conduct transactions using our respective currencies."

Although Trump emphasized that he was helping his ally Bolsonaro to seek justice, according to a report by the U.S. website "Politico," the reason behind Trump's decision had long gone beyond the scope of trade, involving geopolitical considerations. The report cited four sources who said that what really "angered" Trump was the BRICS summit held in Rio de Janeiro, Brazil, where he had long been dissatisfied with the efforts of the BRICS to "de-dollarize."

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