The President of Brazil, Luiz Inácio Lula da Silva, stated that his government will not be "crying" and will seek new buyers in response to the 25% tariff imposed by the United States on Brazilian products.
The President of Brazil, Luiz Inácio Lula da Silva, has firmly responded to the United States' decision to impose a 25% tariff on several Brazilian products. "We are not going to sit here crying over a product we didn’t sell to them," he declared on Wednesday, adding that his government will seek "other buyers" to diversify markets.
The levy, which came into effect on Wednesday, is the result of a Washington investigation into alleged unfair trade practices by Brazil. The Brazilian government rejects the accusation and considers the measure unjust.
To mitigate the impact, Lula's government has announced a credit package worth 18.5 billion reais (about 3.4 billion dollars) aimed at the affected companies. The goal, according to the president, is to help the hardest-hit sectors "diversify" their markets and reduce dependence on the United States.
The sectors most affected by the new tariff are machinery, footwear, wood, and plastics. In contrast, products like beef and coffee have been exempted from the surcharge.
Brazil's response, however, does not include immediate trade retaliation. Vice President Geraldo Alckmin dismissed the possibility of applying reciprocal measures on Tuesday, softening the tone compared to previous statements from Lula, who had mentioned the use of a trade reciprocity law.
"We are not going to get up from the negotiation table. They are the ones who do not want to negotiate," Lula stated on Wednesday, leaving the door open for dialogue with the Trump administration.
The surcharges are shaping up to be a key issue ahead of the presidential elections in October, where Lula will face right-wing senator Flávio Bolsonaro, son of former president Jair Bolsonaro and ally of Donald Trump.
Brazil is also under scrutiny from Washington for possible new tariffs of 12.5% for not imposing bans on the importation of goods from forced labour. The Brazilian government rejects this accusation and hopes that, if applied, it will not be added to the current 25%, according to Commerce Minister Márcio Elias Rosa.
In its defence, Brasília has argued that "there is no justification whatsoever" for the unilateral measures by the United States. They point out that Washington has accumulated a trade surplus of goods and services with Brazil worth 424.5 billion dollars over the last 15 years. Furthermore, in 2025, 76% of U.S. imports entered Brazil duty-free, and the average rate applied to U.S. products was only 3.1%.
For the affected Brazilian companies, Lula's message is clear: the government will not leave them alone. The credit plan aims to provide liquidity to the hardest-hit sectors while exploring new destinations for their exports, such as Asia or Europe.
The trade tension comes at a delicate time for the Brazilian economy, which is seeking to recover growth. Market diversification is presented as a long-term strategy, but in the short term, the 25% tariff represents a severe blow to sectors like footwear or wood.
Negotiations with the United States continue, although Lula remains cautious: "They are the ones who do not want to negotiate," he insisted. Meanwhile, Brazil is preparing for a scenario of greater global protectionism, with an eye on the elections in October.
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