Brazil Warns US 50% Tariffs Threaten Trade War Ahead August Deadline

Brazilian President Luiz Inácio Lula da Silva has vehemently criticized U.S. President Donald Trump's plan to impose 50% tariffs on Brazilian goods starting August 1, warning that this could trigger a full-scale tariff war between the two largest economies in the Western Hemisphere. The tariffs, announced by Trump in response to alleged unfair Brazilian trade practices and political tensions related to former Brazilian President Jair Bolsonaro's trial, have been contested by Brazil, which points to a significant U.S. trade surplus with Brazil over the past 15 years. Brazil's Finance Minister Fernando Haddad has acknowledged that trade negotiations may fail to prevent the tariffs from being implemented, as Washington has yet to respond to Brazil's May trade proposals. Haddad also revealed contingency plans to diversify Brazil's export markets away from the U.S., although such a shift would require time and complex logistical adjustments. Key Brazilian industries, including aerospace manufacturer Embraer and the steel sector, face substantial risks from the tariffs, which could lead to significant economic disruptions. Despite these challenges, Brazil remains open to continuing negotiations, hoping diplomacy can avert a trade war.