Brazilian President Lula defies Trump’s 50% tariff threat over Bolsonaro trial: ‘No reason to be afraid’

US President Donald Trump has threatened to impose 50% tariffs on Brazilian goods starting August 1, linking the move to the prosecution of former Brazilian President Jair Bolsonaro. The threat, described by Brazilian President Luiz Inácio Lula da Silva as “unacceptable blackmail,” has sharply escalated tensions between the two nations.

Trump reportedly told Lula in a July 9 letter that the Bolsonaro trial was a “Witch Hunt that should end IMMEDIATELY”.

Lula hits back: ‘We will negotiate as a sovereign nation’

Lula, in an interview with The New York Times, insisted Brazil would not be intimidated, despite the economic risks.

“There’s no reason to be afraid. I am worried, obviously, because we have economic interests, political interests, technological interests. But at no point will Brazil negotiate as if it were a small country up against a big country. Brazil will negotiate as a sovereign country.”

He stressed that any negotiations with the US must be based on mutual respect rather than threats.

“In politics between two states, the will of neither should prevail. We always need to find the middle ground. This is achieved not by puffing out your chest and shouting about things you can’t deliver, nor by bowing your head and simply saying ‘amen’ to whatever the United States wants.”

Lulu refuses to interfere in judicial process

Lula emphasised that Bolsonaro’s fate lies with the Brazilian judiciary and is not a matter of political bargaining.

“Brazil has a constitution, and the former president is being tried with a full right to a defense,” he said.

“If President Trump had called me, I certainly would have explained to him what’s happening with the former president, because I have a good relationship with everyone. But no, he was led to believe a lie, that Bolsonaro is being persecuted. I would have explained to President Trump that he is not being persecuted, he is being tried.”

High stakes for Brazil’s economy

The 50% tariff — the highest rate threatened by Trump, could severely affect Brazil’s economy. The US is Brazil’s second-largest trading partner after China, making the standoff economically risky.

While Brazil has expressed willingness to negotiate, officials acknowledge that a deal is unlikely before the August 1 deadline.

Trump’s administration has also initiated a Section 301 investigation into Brazil — a process that may take months but could eventually provide legal grounds for further trade action.

Bolsonaro, who narrowly lost the 2022 presidential election to Lula, is currently on trial for allegedly plotting to overturn the result. His supporters stormed government buildings in January 2023, mirroring the US Capitol riot two years earlier. Bolsonaro denies the charges.

Lula warned against letting politics dictate economic relations.

“Brazilians and Americans do not deserve to be victims of politics,” Lula said. “This should not be about Bolsonaro or Trump. It should be about what is good for both our peoples.”