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Key Points

Brazilian President Lula has formed a committee to counter Trump's proposed 50% tariff on imports. The move follows Trump's threat in a letter accusing Lula of a "witch hunt" against Bolsonaro. Lula vowed reciprocity, citing Brazil's sovereignty and economic laws. The committee, led by VP Alckmin, will hold its first meeting with industry representatives.

Key Points: Lula Forms Trade Committee After Trump Threatens Brazil With Tariffs

  • Lula establishes interministerial committee to counter US tariff threats
  • Trump warns of 50% import duty on Brazil starting August 1
  • Committee chaired by VP Alckmin to coordinate economic reciprocity
  • Bolsonaro faces trial amid political tensions with Lula
2 min read

Brazilian president announces formation of committee to coordinate trade countermeasures

Brazil's President Lula creates a trade countermeasures committee in response to Trump's 50% tariff threat, vowing reciprocal action.

"Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage. – Luiz Inácio Lula da Silva"

Brasilia, July 15

Brazilian President Luiz Inacio Lula da Silva announced the formation of an interministerial committee to coordinate economic and trade countermeasures to protect the country's economy.

The move was taken after US President Donald Trump announced a 50 per cent tariff on all imports from Brazil starting August 1. The interministerial committee is created through a decree regulating the economic reciprocity law and will be chaired by Vice President Geraldo Alckmin, who is also minister of development, industry, trade and services, Xinhua news agency reported.

The first meeting of the committee will be held on Tuesday, with representatives from the industrial sector in attendance. Earlier, Trump threatened Brazil with a crippling tariff of 50 per cent starting August 1, according to a letter he sent to the country’s president, Luiz Inácio Lula da Silva.

In the letter posted on Truth Social, Trump alleged Lula is undertaking a “Witch Hunt that should end IMMEDIATELY!” over charges against its right-wing former president, Jair Bolsonaro. Bolsonaro, who has bragged about his closeness with Trump, is facing trial for allegedly attempting to stage a coup against Lula.

Lula vowed to reciprocate if Trump follows through with his threat. “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” Lula said in a post on X. “Any measure to increase tariffs unilaterally will be responded to in light of Brazil’s Law of Economic Reciprocity,” he added.

- IANS

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Reader Comments

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Priya N
Interesting development! Brazil's response shows how emerging economies are becoming more assertive. India should take notes - we need similar mechanisms to protect our economic interests.
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Amit K
Trump's tariff threats are becoming too frequent. First China, now Brazil. This will only hurt global trade. As an Indian exporter, I worry when will our turn come? 😟
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Sarah B
While I support Brazil's right to respond, I hope this doesn't escalate into a full trade war. The global economy is fragile enough as it is. Maybe diplomatic channels should be tried first?
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Nikhil P
Brazil's Law of Economic Reciprocity sounds similar to what India has. We should strengthen BRICS to counter such trade threats from Western nations. Jai Hind! 🇮🇳
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Kavita R
The timing is suspicious - right when BRICS is gaining momentum. Is this America's way of dividing emerging economies? Brazil's strong response is commendable 👏

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