US President Donald Trump threatened to save 50% of the Brazilian goods from August 1, linking a step with the prosecution of former Brazilian President Jaira Bolsonar. The threat described by the Brazilian President Luiz Inacio Lula da Silva as an “unacceptable blackmail”, sharply escalated the tension between two nations.
Trump reportedly said Lule in a letter from July 9 that the Bolsonaro court is “a witch hunt that should end immediately”.
Lula strikes back: “We will negotiate as a sovereign nation”
In an interview with the New York Times, Lula insisted that Brazil would not be intimidated, despite economic risks.
“There is no reason to worry. I’m afraid, of course, because we have economic interests, political interests, technological interests. But in no way Brazil will negotiate as if it were a small country against a large country. Brazil will negotiate as a sovereign country.”
He stressed that any negotiations with the US must be based on mutual respect than on threats.
“In politics between the two states, neither of them should win. We always have to find medium ground. This is achieved by inflating your chest and screaming about things that you can’t add, nor bowed your head and simply said” amen “what the United States wanted.”
Lulu refuses to interfere with the trial
Lula stressed that Bolsonaro’s fate lies in the Brazilian judiciary and is not a matter of political negotiation.
“Brazil has an institution and the former president is tested with full defense,” he said.
“If President Trump called me, I would definitely explain to him what was happening to the former president because I have a good relationship with everyone. But no, he was led to believe lies that Bolsonaro was persecuted.
High Bets for the Brazilian Economy
50% tariff – the highest rate endangered Trump could seriously affect the Brazilian economy. The US is the second largest business partner in Brazil, which makes Standoff economically risky.
While Brazil expressed his willingness to negotiate, officials acknowledge that the agreement is unlikely before the deadline of 1 August.
Trump’s administration also initiated the investigation of Brazil Section 301 – a process that may take months, but could eventually provide legal reasons for further business steps.
Bolsonaro, who closely lost the presidential election to Lula 2022, is currently subject to the court for alleged rendering to overturn the outcome. His supporters attacked government buildings in January 2023, and two years earlier mirrored the American Capitol Riot. Bolsonaro denies fees.
Lula warned against the release of politics dictating economic relations.
“Brazilians and Americans do not deserve politicians,” Lula said. “It shouldn’t be about Bolsonaro or Trump. It should be about what is good for both of our nations.”
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