The initiative comes after the threat of Donald Trump, who, in an unprecedented gesture due to his level of political interference, warned that he will impose tariffs of 50% on Brazilian products if the Lula's Government does not stop the trial against Jair Bolsonaro, accused of attempting a coup d'état in 2022.
The measure is not due to economic reasons, but to political ones: the American president described the judicial process as a "witch hunt" and openly defended his ideological ally. Although, as is usual with TrumpThere are many doubts that he will carry out his threat; the mere announcement has already set off alarm bells in Brazil. The United States is its second-largest trading partner, and a tariff of this magnitude would severely impact sectors such as agribusiness, coffee, meat, steel, and manufactured goods.
The rising price of these goods in the US market could translate into losses worth millions and further complicate Brazil's economic situation, marked by fiscal tensions and signs of deindustrialization. At the same time, the clash with Washington represents an opportunity for Lula to regain political ground and gain popularity with a rhetoric defending national sovereignty, at a time when he is suffering significant losses and is facing difficulties in advancing his domestic agenda.
Source: CESCE
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