MercoPress. South Atlantic News Agency

Brazil strong enough to weather Trump's tariffs, says Lula

Brazil's economy “only depends on us Brazilians,” Lula argued

Brazilian President Luiz Inácio Lula da Silva Monday underscored his country's strong international reserves (US$ 370 billion) to withstand global challenges, including Donald Trump's tariffs. He also highlighted his administration's measures to boost credit and consumption.

The Workers' Party (PT) leader also underlined e-traders Mercado Livre's investments and plans to hire 14,000 workers in a country where wage increases outpace inflation. He made those remarks during an announcement of investments in the logistics sector in Cajamar (SP). The President insisted the economy would grow above expectations in 2025.

“We have paid off Brazil's foreign debt. We have, for the first time, built up an [international] reserve of US$ 370 billion, which insures this country against any crisis. Even if President Trump says what he wants to say, Brazil is safe because we have a cushion of US$ 350 billion, which gives Brazil and [Finance] Minister Fernando Haddad a certain peace of mind,” Lula said at the Mercado Livre event.

According to Brazil's Central Bank (BCB), international reserves stood at US$ 338.6 billion last Friday. However, with the approximately US$ 17 billion auctioned by the Central Bank since last year with a commitment to be repurchased throughout this year, the total rises to US$ 355.6 billion.

Mercado Livre said its bet on the country was justified because the Brazilian economy would continue to grow above forecast this year due to the government's recent measures to stimulate credit and consumption.

“Now, people say: 'The economy is going to slow down, it's going to grow less'. And I want to tell you, in front of the Mercado Livre workers, that the Brazilian economy is going to surprise. Because these people who keep discussing the so-called market, these people who keep discussing the economy, don't know that microcredit is working, and that money is getting into the hands of thousands and millions of people,” said Lula.

“The minimum wage has already risen above inflation for two consecutive years. Employment has been growing again all year. And credit is happening very strongly in this country,” he added.
Since Donald Trump announced tariffs on foreign products, stock markets in several countries have fallen. In Lula's view, Brazil's growth will not depend on other countries. “It doesn't depend on anyone, it doesn't depend on the United States, it doesn't depend on China, it doesn't depend on Africa, it only depends on us Brazilians,” he argued.

“That's what we want: we don't want anything too much. We just want to be treated with respect, with dignity, because we have that right because you are the ones who produce the wealth of this country,” he said.

While visiting Mercado Livre's Logistics Center, Lula hugged company employees and even put a package on the conveyor belt to be sent for delivery.

He was accompanied by Fernando Yunes, senior vice-president of Mercado Livre in Brazil, who explained how this year's R$34 billion (US$ 5.75 billion) investment will be used.

“It's a contribution to move forward with our logistics. This amount will be invested in Mercado Livre, Mercado Pago and marketing,” said Yunes, who also announced that the company would be hiring some 14,000 people this year, in addition to the 50,000 employees who joined the company last year.

Founded in 1999, Mercado Livre is the leading e-commerce and financial services company in Latin America, with operations in 18 countries and more than 84,000 direct employees. Operations in Brazil account for 54% of the company's total business. (Source: Agencia Brasil)