Image reproduced from ETtoday 新聞雲

Recently, Brazilian President Lula announced that the country’s tariff rate has soared to 50%, making Brazil one of the countries with the highest tariffs in the world. This announcement has garnered widespread attention from the international community, especially as U.S. President Trump expressed significant dissatisfaction. In his speech titled "Emperor Speaks," Lula mentioned that Brazil will continue to push for trade cooperation with China and plans to further reduce reliance on the U.S. dollar.

At the BRICS summit, Lula emphasized Brazil's ambition to promote a dollar replacement mechanism, a proposal that has received support from member countries. Lula believes that by promoting transactions in the national currencies of Brazil and other countries, they can reduce the dominance of the dollar in global trade, thereby enhancing the economic autonomy of Brazil and other BRICS nations.

Trump responded to Lula’s decision with criticism, accusing Brazil of engaging in a form of "witch hunt." Trump's comments regarding the supposed witch hunt refer to domestic political oppression against opponents, which he views as an infringement on democracy, accusing Lula's government of lacking true fairness in opportunities.

Despite the increasing international pressure, Lula has repeatedly stated that Brazil is determined to deepen cooperation with China and will not be daunted by external criticisms or pressures. He emphasized that this cooperation extends beyond trade, encompassing cultural and technological exchanges. Lula is confident that such partnerships will bring lasting benefits to Brazil.

The increase in Brazil's tariffs is seen as a measure of economic protectionism, with Lula aiming to safeguard domestic industries. He noted that, in response to the shocks presented by globalization, Brazil must take proactive measures to ensure stable industrial development.

However, this policy has also faced considerable criticism. Some economists have warned that excessive tariffs may restrict exports, thereby affecting Brazil's international trade. Moreover, high tax burdens may lead to increased costs for consumers, further impacting domestic economic growth.

Currently, the Brazilian government is actively discussing with domestic and foreign businesses to seek solutions to these challenges. At the same time, Lula is keenly observing the U.S. response to potentially adjust policies in response to any concerns from Washington.

Overall, Brazil has begun to alter its foreign trade policies in response to changes in the global economic environment over the past few months. How Brazil manages its relationships with other countries and protects its interests in trade will be a key focus in the coming months.