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Brasilia/Washington: Brazilian President Luiz Eneasio Lula Da Silva has clearly told US President Donald Trump that if America has to strengthen the economic partnership with Brazil, it will have to remove 40% tariffs on Brazil’s products. In a 30 -minute phone conversation between the two leaders on Monday, Lula gave this message in Dotuk words. According to the statement issued by the Brazilian President’s Office, the two leaders exchange the phone numbers and agreed to continue the dialogue. During the conversation, Lula also invited Trump to participate in the upcoming climate summit to be held in Belem.
If there is friendship, on the conditions of equality
Lula said in a conversation with Trump, Brazil supports fair trade. We want a partnership, but the condition is that we get equal behavior. If 40% tariff is not removed, our industry and farmers will be badly affected. Lula’s statement is not only an economic but also a political message. He wants to show that Brazil will not compromise on its economic sovereignty despite being an ally of America.
Trump administration’s argument
According to White House spokespersons, the Trump administration has justified these tariffs under the economic emergency. The administration says that the internal policies of Brazil and the ongoing criminal cases against former President Zer Bolsonaro are raising risk for American investors. Bolsonaro refused to give up to Lula in the 2022 election. He has recently been sentenced to 27 years and three months. The Supreme Court panel has found him guilty of plotting a coup. The Trump administration says that Bolsonaro’s trial has weakened the political and economic stability of Brazil, so it was necessary to impose tariffs to protect American business interests.
White House silent, Brazil aggressive
The Trump administration has not yet given any formal response to it. When the media approached the White House, the answer was postponed by saying “no comment”. At the same time, the Brazilian government has said in its statement that it is ready for any level of talks on this issue, but is not in the mood to bow down. Sources close to Lula told the local media that the President raised the issue on a personal level to indicate Trump that if America wants business cooperation, he would have to respect Brazil’s interests.
The first meeting was held in UN
Lula and Trump’s first face-to-face meeting took place in New York during the United Nations General Assembly (UNGA) last month. At that time the two leaders discussed global climate change and the economic situation of southern countries. Now this conversation on the phone is considered to be an extension of that meeting. Lula said that if needed, he will go to Washington himself and meet Trump, so that the tension between the two countries can be reduced.
India-like Brazil
Analysts say that this situation is somewhat like Indo-US trade tension. In 2018 and 2019, the US also imposed heavy duty on India on steel and aluminum products, which India replied by paying a fee of up to 28% on American goods. In Brazil, a similar voice is now being raised that if America does not remove the tariff, Brazil can also take back. Local industry boards have told the government that “Now is the time to respond to equal to America. A large part of Brazil’s exports comes from agricultural products, steel and manufacturing sector. America is the main market for these areas .40% tariffs will be the effect of tariffs that Brazilian products will become expensive in the American market, which will make Brazilian farmers, steel companies and manufacturing industry a huge jerk. If the tariff continues for a year, it can cause a loss of about $ $ 5 billion to the country.
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