Lula opposes new US 25% tariffs, says Brazil 'cannot accept this treatment'

Brazilian President Luiz Inacio Lula da Silva on June 4 sharply criticized a new US tariff proposal, insisting he 'cannot accept this treatment' of his country. The statement came a day after President Donald Trump’s administration announced a 25% tariff on certain goods imported from Brazil, a move that appeared to reverse recent signs of improving ties between the two nations.

Speaking to reporters, Lula said he had left a White House meeting in May feeling optimistic that bilateral relations were progressing well. However, the new tariff proposal caught him off guard, especially while US-Brazil trade talks were ongoing. Lula stressed Brazil still wants to build institutional ties with the US but is ready to seek other trading partners if necessary.

During Trump’s second term, which began on January 20, 2025, the two leaders have frequently clashed on trade, human rights, and political issues. Lula – a veteran leftist leader – quickly became one of the most vocal critics of the Trump administration’s hardline approach to Latin America, including the January 3 attack on Venezuela and an increased US military presence in the Caribbean. For his part, Trump has criticized the Brazilian government for censoring right-wing voices. The US leader has close ties with former Brazilian President Jair Bolsonaro and his family – prominent figures in Brazil’s far-right movement.

Last year, after federal prosecutors brought Bolsonaro to trial for plotting to undermine Brazil’s democracy, Trump retaliated with multiple rounds of tariffs on Brazil, reaching 50% on many products. Bolsonaro was eventually convicted and sentenced to 27 years in prison for trying to overturn the 2022 election results after losing to Lula.

In a statement on June 3, US Trade Representative Jamieson Greer said the new tariff proposal followed an investigation into alleged unfair trade practices. The probe focused on issues including illegal deforestation, ethanol market access, and anti-corruption enforcement. It concluded that trade practices between the two countries 'are unreasonable and burden or restrict US commerce.' Greer also told CNBC about a 'massive' US trade deficit with Brazil.

However, public data contradicts that claim, showing that the US maintains a trade surplus with Brazil. For example, in March, Brazil bought more goods from the US than it exported, resulting in a $420 million surplus for America.

Experts believe the Trump administration appears to be pursuing a new tariff strategy after the US Supreme Court in February struck down sweeping global tariffs imposed by the White House under the International Emergency Economic Powers Act (IEEPA). The new tariffs are being applied under Section 301 of US trade policy, which grants the government broad authority to impose trade sanctions based on alleged violations of trade agreements. The Trade Act of 1974 also allows penalties for trade practices deemed 'unfair.'

The latest tariff round will be opened for public comment, concluding in early July. Several key Brazilian exports are exempt from the new tariffs, including beef, coffee, rare earths, other metals, energy, and aircraft parts. The new tariff proposal comes as Lula faces a tight re-election race in November against Senator Flavio Bolsonaro – the eldest son of former President Bolsonaro.