Brazilian president announces formation of committee to coordinate trade countermeasures
Brasilia: Brazilian President Luiz Inacio Lula da Silva announced the formation of an interministerial committee to coordinate economic and trade countermeasures to protect the country’s economy.
The move was taken after US President Donald Trump announced a 50 per cent tariff on all imports from Brazil starting August 1.
The interministerial committee is created through a decree regulating the economic reciprocity law and will be chaired by Vice President Geraldo Alckmin, who is also minister of development, industry, trade and services, Xinhua news agency reported.
The first meeting of the committee will be held on Tuesday, with representatives from the industrial sector in attendance.
Earlier Trump threatened Brazil with a crippling tariff of 50 per cent starting August 1, according to a letter he sent to the country’s president, Luiz Inácio Lula da Silva.
In the letter posted on Truth Social, Trump alleged Lula is undertaking a “Witch Hunt that should end IMMEDIATELY!” over charges against its right-wing former president, Jair Bolsonaro.
Bolsonaro, who has bragged about his closeness with Trump, is facing trial for allegedly attempting to stage a coup against Lula.
Lula vowed to reciprocate if Trump follows through with his threat.
“Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” Lula said in a post on X.
“Any measure to increase tariffs unilaterally will be responded to in light of Brazil’s Law of Economic Reciprocity,” he added.