Reference News Network July 10 report. According to the Brazilian news agency on July 9, Brazilian President Lula stated on July 9 that Brazil will respond with countermeasures under the "Commercial Reciprocity Law" against the U.S. decision to impose a 50% tariff on all Brazilian goods exported to the United States. President Lula posted on social media to defend national sovereignty, stating that U.S. President Trump's claim that "the tax increase is due to the trade deficit between the U.S. and Brazil" is pure misinformation.

The "Commercial Reciprocity Law," which came into effect in April this year, stipulates that when a country or economic group takes unilateral measures that harm Brazil's international competitiveness, the Brazilian government has the right to suspend commercial privileges, investment licenses, and obligations related to intellectual property.

"Based on this, we will respond to any unilateral tariff measures according to Brazil's 'Commercial Reciprocity Law,'" Lula emphasized.

The Brazilian government pointed out that the U.S. "trade deficit" argument is false: "U.S. government data itself proves that over the past 15 years, the U.S. has had a cumulative trade surplus of 410 billion U.S. dollars in goods and services trade with Brazil."

Lula reiterated that Brazil, as a sovereign country, "has an independent system of institutions and will not accept any guardianship."

According to EFE news agency on July 9, diplomatic sources told EFE that on July 9, the Brazilian Foreign Ministry summoned the acting ambassador of the U.S. Embassy in Brazil, Gabriel Escobar, twice in one day.

The first summons of Escobar by the Brazilian Foreign Ministry was to ask him to explain a statement issued by the U.S. Embassy in Brazil, which strongly defended former Brazilian President Bolsonaro, who is currently undergoing criminal trial for involvement in a coup case.

The second summons targeted the decision by U.S. President Trump to announce a 50% tariff on Brazilian goods exported to the U.S. based on political and economic reasons.

Sources confirmed that, just like during the first summons, Escobar was also received by Maria Luiza Escorel, head of North American affairs at the Brazilian Foreign Ministry, during the second meeting.

According to sources, Escorel returned the letter announcing the 50% tariff on Brazilian goods to the U.S. in person, calling it "containing aggressive content and factual errors regarding trade data." (Translation/ Han Chao)

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