President Luiz Inácio Lula da Silva countered on Tuesday (Jun. 2) the US government’s argument that Brazil engages in “unreasonable” practices in their relationship. Lula reiterated that the United States has a trade surplus with Brazil and said that, if anyone should impose tariffs, it should be Brazil.

“The US trade surplus over the past 15 years has been USD 415 billion. So, if anyone should be raising tariffs, it should be us, not them,” Lula said. He also noted that both he and US President Donald Trump had agreed to a 30-day deadline to reach an agreement on the trade issue.

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“As you know, I recently visited the United States. I had a three-hour conversation with President Trump. His secretary of commerce began to say that there were tariffs, and I said there was a disagreement between his secretary of commerce and my secretary of commerce,” the president said, noting that he had handed over documents showing that the United States has a favorable trade balance with Brazil.

“So I told him [Trump]: let’s give each other 30 days to prove who is right and who is wrong. If I’m wrong, I’ll accept it; if you’re wrong, you’ll accept it. And we gave each other 30 days. So far, the two [secretaries] have spoken three times, and no agreement has been reached,” he added.

The conversation between the two, as mentioned by Lula, took place in early May at the White House, where they discussed trade relations, the fight against international organized crime, and the exploitation of strategic minerals.

Opposition backs tariff hike

Lula spoke at the inauguration of the new campus of the Federal Institute of Goiás in Catalão. He also recalled the stance taken by the sons of former President Jair Bolsonaro when Trump imposed 50 percent tariffs on all Brazilian products exported to the US. Without naming anyone, he cited a post by Senator Flávio Bolsonaro, who at the time thanked Donald Trump for the tariffs on Brazilian products.

“On the day he [Trump] imposed the tariffs, I’ll tell you what Bolsonaro’s sons did. One of them, who is a presidential candidate, tweeted on July 9, 2025: ‘Thank you, Trump, make Brazil free again,’” he recalled. “His son, who appeared on television today to say he didn’t say anything, actually thanked him.”

On social media, Flávio Bolsonaro said he asked Trump not to impose tariffs on Brazilian products. The two met at the White House in late May.

The US government announced that it may impose a new punitive 25 percent tariff on Brazilian imports, alleging that certain practices in Brazil are unfair.

Among the practices cited are e-commerce and illegal deforestation. Some products, including beef, coffee, rare earth metals, other metals, and aircraft parts, are exempt from the new tariff, which may take effect on July 15.

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The measure is based on an investigation launched in July 2025 by the Office of the United States Trade Representative (USTR), which concluded that Brazilian policies and practices are “unreasonable” and “burden or restrict” US trade.

The investigation’s final report calls for the imposition of “tariffs or other restrictions on imports of Brazilian products.”

“Based on this possibility, the US Trade Representative proposed the application of 25 percent tariffs on all goods from Brazil,” the document reads.

The additional tariffs, however, include exceptions for products that could cause “disruptions” across the economy if subjected to the new duties, as well as “certain products that cannot be grown or produced in sufficient quantities in the United States, nor obtained from other sources.”

Among the exceptions are fruits and nuts, crude oil and its derivatives, pharmaceutical compounds, organic chemicals, fertilizers, beef, coffee, rare earth minerals, certain metals and ores, and Brazilian aircraft and aircraft parts.

US Trade Act

The USTR’s decision, announced on Monday evening (Jun. 1), is based on provisions of Section 301 of the US Trade Act of 1974.

The investigation assessed practices in the areas of digital commerce and electronic payment services, such as the Pix instant payment system; preferential tariff policies; intellectual property protection; anti-corruption measures; access to the ethanol market; and illegal deforestation.

The USTR asserts that, in these areas, US companies and exports are being harmed. As a result, the US government has opened a public consultation on possible corrective measures.

The process includes a comment period ending July 1 and a public hearing on July 6, while negotiations with the Brazilian government continue. The legal deadline for adopting the new tariff is July 15, 2026.

The investigation has already heard testimony from more than 30 witnesses and received nearly 300 submissions.

US Ambassador Jamieson Greer said the investigation was launched at the request of President Donald Trump, who cited longstanding and widespread US concerns about certain Brazilian trade policies and practices.

“Over the past year, President Trump and I have had several constructive meetings with President Luiz Inácio Lula da Silva and his cabinet. These meetings have intensified in recent weeks,” Greer said.

“However, we continue to have substantial differences regarding the resolution of the issues identified in this investigation. I look forward to continuing the dialogue with the Brazilian government before the July 15, 2026 legal deadline for taking corrective measures,” he added.