Lula Challenges Trump: Brazil Can Live Without US Trade
Brazilian President Luiz Inácio Lula da Silva responded sharply to US President Donald Trump's threat of 50% tariffs, stating that Brazil can survive without trade with the United States. In an interview broadcast on Record TV on Thursday night, Lula asserted, "Brazil's trade with the US represents only 1.7% of our GDP. That doesn't mean we can't live without them." This statement came after Trump announced plans for large tariffs on Brazilian goods in an official letter that cited former President Jair Bolsonaro's legal troubles as the trigger.
Lula, known as a left-wing leader with an independent diplomatic approach, added that Brazil would seek alternative trading partners, including China and other BRICS countries. He also criticized the dollar's dominance in global trade and reiterated his commitment to building a multilateral trading system based on local currencies between countries. "I'm not obliged to buy dollars to trade with Venezuela, Bolivia, or the European Union," he asserted in the interview.
Although the US is Brazil's second-largest trading partner after China, Lula considers Trump's tariff policy unilateral and damaging to international relations. According to Bloomberg Economics, the planned 50% tariffs could negatively impact Brazil's economy by 1% and cause a drop of up to 60% in Brazilian exports to the US. However, the report also indicates that a significant portion of these exports could be diverted to other countries.
In an interview with Globo TV, Lula asserted that the tariff battle could be "endless" and warned that the US cannot act as if it controls other countries. He also stated that BRICS efforts to establish a cross-border payment system are still in their early stages, but that Trump has nothing to worry about. "Trump doesn't need to be afraid of BRICS. But we won't submit either," Lula asserted.
Source: (ayu-newsmaker)
