MercoPress. South Atlantic News Agency

Lula pushes back on US tariffs, says Brazil is the one running a trade deficit

“The US surplus over the past 15 years was 415 billion dollars. So we were the ones who should have raised taxes, not them,” Lula said

Brazilian President Luiz Inácio Lula da Silva on Tuesday rejected the US government's argument that Brazil engages in “unreasonable” practices in the bilateral relationship, arguing that it is Washington that runs a trade surplus with his country. If anyone should impose tariffs, he said, it would be Brazil.º

“The US surplus over the past 15 years was 415 billion dollars. So we were the ones who should have raised taxes, not them,” Lula said during the inauguration of a new campus of the Goiano Federal Institute, in Catalão. US government data indicate that the United States held a goods surplus with Brazil —one of the few G20 countries in that position— although the magnitude Lula cited is his own estimate.

The remarks came after the US Trade Representative announced 25% tariffs on Brazilian products, under a Section 301 investigation, with some exemptions and a deadline in mid-July. Lula recalled that he and President Donald Trump had agreed to a 30-day window to reach a trade understanding, after meeting in early May at the White House for more than three hours.

“I told him: the two of us will give 30 days for them to prove who is right and who is wrong,” the president said, adding that he had handed over documents he said demonstrate a trade relationship favorable to the United States. “So far they have spoken three times and there has been no agreement,” he added. The May meeting also addressed the fight against organized crime and the extraction of strategic minerals.

Lula also criticized the stance of former President Jair Bolsonaro's family on the tariffs. Without naming him, he cited a July 9, 2025 post by one of Bolsonaro's sons thanking Trump for the measures: “Thank you, Trump, make Brazil free again.” Senator Flávio Bolsonaro later said he had asked Trump not to impose tariffs on Brazilian goods; the two met at the White House in late May.

The bilateral relationship became strained in 2025, when Trump threatened a 50% tariff on Brazilian exports and tied the move to the trial of Bolsonaro, which he called a “witch hunt.” Bolsonaro was later convicted of attempting a coup after losing the 2022 election. The tariff dispute remains unresolved, pending the next steps from both governments.