Brazil’s Lula Opens Chinese EV Factory, Strengthens BRICS Ties Amid US Criticism and Eduardo Bolsonaro’s Tariff Warnings

Brazilian President Luiz Inácio Lula da Silva announced a strategic shift to diversify Brazil's trade partnerships and reduce dependency on the United States market. He emphasized national sovereignty and peaceful negotiations while highlighting upcoming diplomatic and commercial agendas with China, Vietnam, and India. Lula also underscored Brazil's integration with BRICS nations as a key element of this approach, citing frustration with being treated as a third-world country. The president welcomed foreign investment, notably inaugurating a new factory of Chinese electric vehicle maker GWM in Iracemápolis, signaling increased Chinese presence as American and German companies like Ford and Mercedes exit Brazil. In response to U.S. criticism, including former President Donald Trump's characterization of Brazil as a "horrible" trade partner, Lula defended Brazil's commercial reputation. Trump expressed no concern over Latin America's growing ties with China, stating the U.S. is economically outperforming others. Meanwhile, Eduardo Bolsonaro, a Brazilian lawmaker and son of former President Jair Bolsonaro, warned of potential additional U.S. sanctions and tariffs against Brazil, linked to ongoing judicial actions against his father. This stance drew condemnation from Brazilian political figures such as Rui Costa, who labeled Eduardo Bolsonaro a "traitor" for advocating U.S. punitive measures. Senator Flávio Bolsonaro also claimed that U.S. recognition of Brazilian elections would be problematic without Jair Bolsonaro's candidacy. Additionally, Eduardo Bolsonaro reported alleged non-compliance with the Magnitsky Act by Brazilian banks during a meeting with U.S. Treasury Secretary Bessent. The developments reflect heightened trade tensions and complex political dynamics between Brazil and the United States amid shifting global alliances.