Photo credit: finance.yahoo.com
Brazil’s Lula Criticizes U.S. Trade Tariffs and Vows WTO Action
TOKYO (Reuters) – Brazilian President Luiz Inacio Lula da Silva has expressed significant concerns over U.S. President Donald Trump’s recent trade policies, suggesting that they could potentially harm the U.S. economy. Lula specifically pointed to Trump’s plan to impose tariffs on imported cars and light trucks, which he announced on Wednesday, indicating that such protectionist measures could lead to inflated prices for consumers and unintended negative consequences.
During a press conference in Tokyo, Lula stated, “It will raise the prices of goods and could lead to inflation that he hasn’t yet realized. Protectionism doesn’t help any country in the world.” His remarks highlight a growing anxiety among international leaders regarding the implications of the U.S.’s trade strategy, which has escalated since Trump took office in January.
The emerging trade conflict also includes a recently imposed 25% tariff on steel and aluminum imports from Brazil, the second-largest exporter of steel to the U.S. Brazil has sought to reestablish a tariff-free export quota policy that was in place before these tariffs were enacted but has so far been unsuccessful in negotiations.
Lula outlined two primary options for Brazil moving forward: appealing to the World Trade Organization (WTO) to contest the tariffs and considering retaliatory measures by imposing higher tariffs on American goods. “We can’t just stay quiet,” he said, underscoring Brazil’s intention to actively respond to what it perceives as aggressive trade actions from the U.S. government.
These discussions are taking place as Lula engages with Japanese Prime Minister Shigeru Ishiba to enhance economic and trade relations between Brazil and Japan, illustrating the broader context of international trade dynamics. Both leaders are focused on strengthening ties amidst the challenges presented by protectionist policies in the global market.
(Reporting by Tim Kelly in Tokyo and Lisandra Paraguassu in Brasilia; Editing by Jamie Freed and Stephen Coates)
Source
finance.yahoo.com