TOKYO — Brazilian President Luiz Inácio Lula da Silva expressed his concerns on Thursday regarding U.S. President Donald Trump’s decision to impose increased tariffs on a wide range of imported goods, including automobiles. Lula highlighted the potential negative impacts of this policy on both the American and global economies.
These comments came as Lula concluded a four-day visit to Japan, during which President Trump’s announcement of a 25% tariff on all car imports generated significant unease. Japan, being a key exporter of automobiles and a close ally of the United States, relies heavily on the U.S. as a primary market for its car exports.
“I am deeply concerned about the direction of the American government’s actions,” said Lula through an interpreter. “Free trade is being undermined, and multilateral relationships are at risk,” he noted.
Lula argued that Trump’s tariff hike would likely lead to considerable negative consequences, increasing prices for American consumers and contributing to inflation. This could subsequently prompt higher interest rates, potentially impeding economic growth. He emphasized that President Trump’s protectionist stance is adverse not only to the U.S. but also to global economies.
Japanese Prime Minister Shigeru Ishiba voiced a desire for Japan to be exempted from the tariffs. “It is imperative to find suitable responses, including potential countermeasures,” Ishiba mentioned during a parliamentary session. “Ultimately, we must prioritize what benefits Japan’s national interests the most.”
During Lula’s visit, Japan and Brazil agreed to strengthen partnerships in economic, trade, and security spheres. As other countries like Canada, Mexico, China, and Europe responded to Trump’s tariff impositions with threats of retaliation, Japan has been proactive in forming stronger alliances.
Japan’s Chief Cabinet Secretary Yoshimasa Hayashi described the U.S. decision on auto tariffs as “extremely regrettable,” underscoring the nation’s request for exemption.
Brazil stands as the leading steel exporter to the U.S., and President Lula mentioned considering complaints to the World Trade Organization, with the possibility of imposing counter-tariffs themselves. However, Brazil is not currently a primary target of U.S. trade retaliation efforts, given that it significantly imports from the U.S.
In 2024, the trade surplus of the United States with Brazil reached $7.4 billion, marking roughly a 32% rise year-over-year. Brazil’s principal exports to the U.S. include petroleum, iron, and steel, whereas its major imports are crude and refined oil, gas turbines, aircraft, chemicals, and machinery.