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TWN
Info Service on WTO and Trade Issues (Jul25/14) Geneva, 11 Jul (D. Ravi Kanth) — Brazil on 10 July denounced United States President Donald Trump over his threat to impose a 50% tariff on all Brazilian goods entering the American market on the seemingly extraneous grounds of the alleged “witch hunt” launched by the current Brazilian government against its controversial former President Jair Bolsonaro. Denouncing President Trump on the social media platform X, Brazilian President Luiz Inacio Lula da Silva said that Brazil will not accept “any form of tutelage.” President Lula wrote: “In light of the public statement made by US President Donald Trump on social media on the afternoon of Wednesday (9 July), it is important to highlight the following: “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage.” “The judicial proceedings against those responsible for planning the coup d’etat [allegedly by Bolsonaro] fall exclusively under the jurisdiction of Brazil’s Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions.” Systematically rejecting President Trump’s assertion that US social media platforms are being allegedly ill- treated and subjected to harassment, President Lula said that, “In the context of digital platforms, Brazilian society rejects hateful content, racism, child pornography, scams, fraud, and speeches against human rights and democratic freedom.” According to media reports, Facebook and other US digital platforms are reportedly causing havoc in loosening their rules surrounding “hateful content”, and “racism.” In his post, President Lula said: “In Brazil, freedom of expression must not be confused with aggression or violent practices. All companies – whether domestic or foreign – must comply with Brazilian law in order to operate within our territory.” President Lula also said “the claim regarding a US trade deficit in its commercial relationship with Brazil is inaccurate.” He argued that “statistics from the US government itself show a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years.” “Therefore,” President Lula said, “any unilateral tariff increases will be addressed in accordance with Brazil’s Economic Reciprocity Law.” RECIPROCITY LAW Brasilia’s Law No.15,122, also known as the “Economic Reciprocity Law”, was signed without any vetoes by President Lula and published in the Official Gazette on 14 April. The text of the law as published on 14 April, “establishes criteria for the suspension of concessions in trade, investments, and obligations related to intellectual property rights, in response to unilateral measures adopted by individual countries or economic blocs that negatively impact Brazil’s international competitiveness.” According to a Brazilian Government post on its website (gov.br) explaining the law, “the regulation represents a strategic action by Brazil in the face of the tariffs imposed on dozens of nations by the administration of United States President Donald Trump.” “In the case of Brazil,” according to the post, “the tariff corresponds to 10% on top of every product exported to the North American market. For Brazilian steel and aluminum, the tariff corresponds to 25%, significantly affecting Brazilian companies. Brazil is the third-largest exporter of these metals to the United States.” The text requires Brazil to adopt countermeasures “to minimize the impact on economic activity and avoid disproportionate onus and administrative costs.” Further, the countermeasures would include “restrictions to the importation of goods and services or measures to suspend concessions in the areas of trade, investments, and obligations related to intellectual property rights, as well as measures to suspend other obligations foreseen in any of the country’s trade agreements.” More importantly, the countermeasures to be adopted by Brazil in relation to any unilateral tariffs must be “proportional to the economic impact generated by the actions, policies, or practices applied unilaterally in measures in the areas of trade, finances, and investments that go against Brazilian interests.” “The instrument reaffirms Brazil’s sovereignty in trade and environmental decisions and seeks to protect national economic interests from practices deemed unfair or abusive.” Against this backdrop, the Brazilian President stated rather unequivocally in his post on X: “Sovereignty, respect and the unwavering defense of the interests of the Brazilian people are the values that guide our relationship with the world.” The White House has so far not provided any immediate response to President Lula’s rejection of the tariff threats issued by President Trump. US COPPER TARIFF Meanwhile, in a separate development on 10 July, President Trump announced a 50% tariff on copper and copper products entering the US market from 1 August. Writing in his Truth Social media website, President Trump said: “I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT.” Justifying his allegedly unilateral tariff measure, he stressed: “Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many.” President Trump continued: “Copper is the second most used material by the Department of Defense! Why did our foolish (and SLEEPY!) “Leaders” decimate this important Industry?” “This 50% TARIFF will reverse the Biden Administration’s thoughtless behavior, and stupidity. America will, once again, build a DOMINANT Copper Industry. THIS IS, AFTER ALL, OUR GOLDEN AGE!” President Trump is seeking to use the 50% tariff to protect the domestic copper sector, like other metals such as steel and aluminium, which are already attracting a 50% tariff. Given the unilateral nature of every measure that has been taken so far by the Trump administration in its second term, the allegedly “extortive” tariff process could go on for months, said people familiar with the development. +
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