Starting August 6, the United States will impose a 40% tariff on Brazilian products exported to the U.S. Brazil's president said: "We are equal, and we will not submit to the U.S."

At 8:00 PM Beijing Time on August 3, Lula once again firmly stated at the presidential palace: "We don't want to fight, but don't think we're afraid." As soon as he finished speaking, the U.S. Trade Representative Griles responded from afar: "A 50% tax rate is non-negotiable."

What exactly happened behind the scenes? Let's rewind to July 30. Trump signed an executive order, which took effect at midnight on August 6: except for airplanes, nuts, orange juice, and some metals, almost all Brazilian goods exported to the U.S. would be subject to an additional 40% tax on top of the existing 10%, pushing the total rate up to 50%. Vice President Alcmin calculated that 35.9% of Brazil's exports to the U.S. would directly face this 50% tariff, with furniture, shoes, and steel being hit first. The Brazilian Furniture Association was in a panic — the U.S. market accounts for one-third of their exports, and the livelihoods of 1.1 million people hang by a thread under the tariff knife.

More absurdly, Washington also placed Supreme Court Judge Demorais on the sanctions list, citing "human rights violations," while the judge is currently handling a criminal case against former president Bolsonaro. Lula was furious: "Exchanging tariffs for justice? Brazil is not America's backyard!"

The reason is not mysterious. The White House's public statement is to "correct the trade deficit," but the New York Times revealed the truth: what really angered Trump was the "de-dollarization" talk at the June BRICS Rio Summit, and Brazil even planned to lead research on currency settlement. Thus, the U.S. launched the "three-bucket plan": countries that comply enter the green bucket for benefits, middle countries enter the yellow bucket, and non-cooperating ones are directly thrown into the red bucket with high tariffs. Brazil ended up labeled as a "red bucket" country.

Lula has no way out. In April, the Brazilian Congress passed the "Economic Equivalence Act," authorizing the government to "retaliate in kind." On July 9, Lula said: "If the 50% tariff is implemented, we will return the same rate." The Brazilian Central Bank has secretly prepared foreign exchange quotas to help export companies with funding; the National Industry Confederation flew to Washington on August 1 for a last-ditch effort.

The negotiation table was full of tension. The U.S. demanded Brazil "end the judicial investigation of Bolsonaro," which was immediately rejected by Brazil's Foreign Minister Amorim: "No one dared to do that during the colonial era." On July 25, 15,000 people gathered in São Paulo, burning the American flag and chanting "Trump is not an emperor"; on social media, netizens edited the classic photo of Vampeta doing a handstand in 2002 into Trump, mocking "America treats the world like a football."

With less than 48 hours until August 6, Brazil's Finance Minister Adaúde admitted: "The agreement is basically impossible, but we have a B-plan — low-interest loans for companies and opening up markets in the Middle East and Asia." If the 50% tariff is ultimately implemented, the South American largest economy will take legal action to retaliate against the U.S. with the same rate for the first time. The global trade map will also be shaken: WTO rules will be ignored, and new cracks will appear in the dollar-dominated settlement system.

At this point, it's your turn to comment: When tariffs are used as a political club, can small countries only endure silently? Please leave your comments below.

Sources: CCTV News 2025-08-03 "New Round of Tariffs 'Basically Set and Not Adjusted' — What Tactics Are Hidden in the U.S.' Latest Statement?"; Guangming Network 2025-08-04 "Brazil's President Responds to U.S. Tariff Increase: We Are Equal, Brazil Will Not Submit"; China News 2025-07-30 "U.S. Tariff Stick Hitting Brazil — 50% Tax Rate Tears the Complementarity of U.S.-Brazil Trade."

Original: https://www.toutiao.com/article/1839536864654345/

Statement: This article represents the views of the author."