Brazil's Lula Says New US Tariffs Will Hurt Trade and Raise Prices

Brazilian President Luiz Inácio Lula da Silva has strongly criticized the latest US tariffs, calling them unfair and a strategic mistake that could damage one of the Americas' most important trade relationships.

Writing in an opinion article for The Washington Post, Lula said the new import duties would increase prices for American consumers, disrupt supply chains and push Brazilian businesses to look for trading partners outside the United States.

His comments come as trade tensions between the two countries continue to rise despite months of discussions between officials.

Will the New Tariffs Hurt Both Countries?

Lula said the US government imposed new tariffs ranging from 12.5% to 37.5% on several Brazilian products despite repeated negotiations between both sides.

According to him, the new measures ignore technical discussions and proposals that Brazil presented directly to President Donald Trump.

Highlights:

• President Luiz Inácio Lula da Silva said the new US tariffs will increase costs for American consumers and weaken trade between the two countries.
• Lula warned that Brazilian companies could shift to new global suppliers if the tariffs continue, affecting long-term supply chains.

He warned that products such as food, footwear, textiles, furniture and auto parts will become more expensive for American consumers because of the higher import duties.

Lula also argued that the tariffs could weaken long-standing business relationships between companies in both countries, making trade more expensive and less competitive.

According to the Brazilian president, the United States has maintained a trade surplus with Brazil in goods and services for 15 consecutive years, making the new tariffs difficult to justify from a trade perspective.

Brazil Signals It May Look Beyond the US

Lula warned that the tariffs could reshape global supply chains over the coming years.

He said Brazilian companies may gradually replace American suppliers with businesses from other countries if higher trade barriers remain in place. Such a shift could reduce future business opportunities between the two economies.

The president also noted that Brazilian exports to the United States have already fallen to their lowest level since 1997, highlighting the growing pressure on bilateral trade.

Citing data from Global Trade Alert, Lula said Brazil and Turkey are now the second most heavily tariffed countries by the United States after China.

Despite his criticism, Lula said Brazil remains open to constructive dialogue with Washington to resolve trade differences. At the same time, he stressed that Brazil will continue making its own economic decisions without outside influence.

The renewed tariff dispute comes as both countries face changing global trade dynamics and growing competition across international markets. While negotiations may continue, businesses on both sides will closely watch whether future talks can ease tensions and restore stronger trade relations.