We will not leave the negotiating table, says Lula about Trump's tariff

Lula's speech reinforces the Brazilian government's willingness not to retaliate against the North American country because of the 25% tariff, a possibility that had already been rejected by the vice-president, Geraldo Alckmin (PSB).

The speeches soften the Brazilian government's first demonstration after the confirmation of the surcharges, when there was mention of reciprocity measures.

"Will this increase our antagonism towards the United States? No, it won't, because we won't leave the negotiation table. Let them say they don't want to negotiate. Because we are sitting at the table, making proposals every time and challenging them to prove that they had any reason to tax Brazil", said the Brazilian president.

Lula said that Brazil tried to negotiate previously, but that there was no receptivity from the North American government.

Last week, the United States announced new 25% tariffs on Brazilian products after concluding an investigation that accused Brazil of unfair trade practices. The tariffs came into effect this Wednesday.

The PT member also mentioned the possibility of selling products that traditionally go to the United States to other buyers.

"We are finding negotiation mechanisms, we are discussing with many countries so that we can supply and even earn more than what we were earning," said Lula.

The president once again said that the accusations of unfair trade practices are based on lies - the Brazilian government's main argument is that the United States has a positive balance in trade with Brazil, counting goods and services.

"If any country can lose based on a lie, it is important for you to know that we will not lose. We will win because we are stubborn. We will win because we cannot be bravado, because we are right and we will win," he said.

The Lula administration's first reaction to this stage of pricing was to publish a note that talked about activating the instruments provided for in the Reciprocity Law. Ministers planned to take suggestions on measures to retaliate against the United States to the president.

The main actors in the private sector, however, are against taxing back American products, because this would increase the costs of imported goods in Brazil and escalate tension with the Trump administration.

Lula made the statements during the announcement of an additional R$18.5 billion to help companies affected by tariffs, in the third stage of the Sovereign Brazil plan. Vice-president Alckmin and ministers Bruno Moretti (Planning), Dario Durigan (Finance) and Márcio Elias Rosa (Industry and Commerce) also participated.

Rosa said that the indication that the country will not adopt reciprocal measures against the United States does not represent a retreat.

"The government has not retreated an inch from what it announced and what the plan is", argued minister Márcio Elias Rosa (Industry) about the change in rhetoric.

"The law gives us the possibility of applying a measure of reciprocity, and it also involves the adoption of procedures to reach an eventual measure. There is now no need to seek the application of any measure."

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