MercoPress. South Atlantic News Agency

Trump spoils Lula's celebration of trade surplus with Iran

The crisis in Iran is escalating, and Trump will take whichever action he deems necessary

US President Donald Trump announced on Monday that any nation conducting business with Iran will face a 25% tariff on all trade with Washington, thus crushing earlier celebrations by Brazil's Luiz Inácio Lula da Silva, whose government proudly announced a substantial trade surplus with Tehran, totaling US$2.8 billion in 2025, driven by corn and soybeans.

Corn accounts for 67.9% of Brazil's exports to Iran (US$2 billion), and soybeans represent 19.3% of shipments, worth US$563.6. In retrospect, Brazil primarily purchases chemical fertilizers from Iran (US$66.8 million), which are critical for its domestic farming industry.

While Iran represents only 0.84% of Brazil's total global exports, the 25% “penalty” on Brazil’s trade with the US would be devastating, at a time when trade with the US is vastly larger. In other words, keeping the Iranian market could far outweigh its profits.

The threat of a 25% tariff comes at a time when Brazil is already navigating a complex relationship with the Trump administration. President Luiz Inácio Lula da Silva has previously signaled a willingness to negotiate but warned of “tit-for-tat” measures if Brazilian sovereignty was compromised.

Trump's decision sought to pressure Tehran amid a violent crackdown on mass protests. “Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America,” Trump wrote on Monday on Truth Social. “This Order is final and conclusive. Thank you for your attention to this matter!”

White House Press Secretary Karoline Leavitt emphasized that while the administration is exploring diplomatic backchannels, military force remains a viable tool. “One thing President Trump is very good at is always keeping all of his options on the table,” Leavitt stressed. “Airstrikes would be one of the many, many options that are on the table for the commander in chief... Diplomacy is always the first option for the president, but he is unafraid to use military options if and when he deems necessary.”

“If they start killing people like they have in the past, we'll be hitting them very hard where it hurts. And that doesn't mean boots on the ground, but it means hitting them very, very hard,” Trump told reporters himself.

Meanwhile, Iranian Foreign Minister Abbas Araghchi warned that while they were open to “fair” negotiations, the country was prepared for the worst.

Following Trump's announcements, Lula replied that “Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone.” “If there's no negotiation, the reciprocity law will be put to work. If he charges 50 from us, we will charge 50 from them,” Lula insisted.