'Blackmail': Brazilian President Lula slams Trump's 50% tariff; threatens retaliation

Brazilian President Luiz Inacio Lula da Silva on Monday denounced what he called " tariff blackmail " after the United States imposed a 50 per cent import charge on Brazilian goods.

"Tariff blackmail is being normalised as an instrument for market conquest and to interfere in domestic affairs," Lula said during a virtual meeting of Brics leaders, including Chinese President Xi Jinping, Russia’s Vladimir Putin and South Africa’s Cyril Ramaphosa.

The tariff, imposed by US President Donald Trump, targeted a wide range of Brazilian products and caused exports to the United States to drop 18.5 per cent year-on-year in August.

Trump said the measure was a response to what he described as a "witch hunt" against his ally, former president Jair Bolsonaro. Bolsonaro is on trial for allegedly plotting a coup after losing to Lula in the October 2022 elections. A verdict is expected this week.

Brazil has warned it may introduce retaliatory tariffs and has formally asked the World Trade Organisation to intervene in the escalating dispute.