Brazilian President Luiz Inacio Lula da Silva has vowed to impose retaliatory tariffs on the United States if President Donald Trump follows through on plans to slap a 50 percent import tax on Brazilian goods.
Lula said on Thursday that he would trigger a reciprocity law approved earlier this year if talks with Washington fail.
His remarks come after Trump posted a letter on social media targeting Brazil for what he called a "witch hunt" criminal trial against former president Jair Bolsonaro.
"If there’s no negotiation, the reciprocity law will be put to work," Lula told TV Record.
"If he charges 50 percent from us, we will charge 50% from them."
The dispute threatens to spark a trade war between the two countries, with Trump using tariffs as leverage to interfere in Brazil’s judicial process.
Bolsonaro, who is on trial for allegedly attempting to overturn his 2022 election loss to Lula, is widely seen as a close Trump ally.
Lula ordered diplomats to return Trump’s letter if it physically arrives at the presidential palace, calling the document disrespectful and politically motivated.
‘Negotiations up in air’
The letter, posted online Wednesday, criticises Brazil’s judiciary and recent court rulings related to social media regulation.
The White House has not commented on the letter, which marks the first time Trump has openly used trade tools to pressure another country over a domestic criminal case.
Brazil’s Foreign Ministry said ongoing trade talks have now been thrown into uncertainty. "Negotiations are up in the air," a ministry official told the Associated Press.
Although Trump cited trade imbalances as justification, US data shows the country runs a surplus with Brazil, undermining some of the stated rationale.
In an unusual show of unity, Brazil’s major political parties, including critics of Lula, condemned Trump’s actions.
The newspaper O Estado de S. Paulo described Trump’s letter as "a mafia thing" and praised Lula’s response as measured and appropriate.
Bolsonaro, whose trail is at the centre of the dispute, weighed in on Thursday, saying the tariffs "would never have happened under my government."
In a post on social media, he added: "I make clear my respect and admiration for the government of the United States."
Trump’s interference has also fuelled speculation that he could offer Bolsonaro refuge if convicted.
The former president’s passport has been seized by Brazil’s Supreme Court, citing flight risk concerns.
Meanwhile, Bolsonaro’s son Eduardo, who moved to the US earlier this year, praised Trump on social media.
Lula responded: "His son went there to make up Trump’s mind. Then Trump writes a letter about a case that is in the hands of the Supreme Court. This is not a political trial. What’s under investigation is evidence."
