Brazilian President Luiz Inacio Lula da Silva has vowed to use all available measures, including the World Trade Organization (WTO), to defend Brazil's interests following the United States' decision to impose steep new tariffs of up to 50% on Brazilian exports. Lula rejected direct negotiations with U.S. President Donald Trump, describing such talks as humiliating, and instead plans to coordinate a joint response with BRICS allies, particularly India and China. Brazil has formally requested consultations at the WTO regarding the U.S. tariffs. Despite the tariff imposition, Lula ruled out retaliatory tariffs against the U.S. but announced plans to provide aid to Brazilian firms affected by the duties. The tariffs have caused volatility in commodity markets, notably leading to a drop in Arabica coffee futures, reflecting concerns over Brazil's export prospects. Concurrently, Indian Prime Minister Narendra Modi is set to visit China on August 31 to attend the Shanghai Cooperation Organization (SCO) summit in Tianjin, marking his first visit to China since 2019. Modi and Lula recently held talks reaffirming their commitment to multilateralism and agreed to strengthen cooperation across trade, technology, energy, defense, agriculture, health, and people-to-people relations amid rising global trade tensions. China has welcomed Modi's visit to the SCO summit. Brazilian officials have announced a four-pronged strategy to counter the U.S. tariffs, emphasizing multilateral engagement and collaboration with BRICS partners. The ongoing trade tensions have strained U.S.-Brazil relations, with Lula criticizing the unilateral approach of the U.S. government under Trump and opting to deepen ties with emerging economies.
Donald Trump has slapped a tariff rate of 50% on Brazil, one of the steepest in the world. Yet the country imports more from America than it exports, and exemptions will soften an already light blow https://t.co/IcIsGmRuqI
Lula ataca Trump, diz que Moraes 'garante a democracia' e pede impeachment de parlamentares que fizeram motim no Congresso https://t.co/VuomNXXIJ8
📰 via @business: Brazil will not target the US with reciprocal tariffs in response to the 50% trade levies Donald Trump placed on its goods, President Luiz Inacio Lula da Silva told Reuters in an interview. https://t.co/MLIbwPl365