Lula criticizes Trump's tariff and defends BRICS' commercial autonomy

In interviews, the president rules out direct contact with the United States, says Brazil will seek new markets and reinforces the idea of ​​trade in local currencies.

President Luiz Inácio Lula da Silva (Workers' Party) once again advocated for greater commercial autonomy for BRICS, a bloc that brings together countries from the Global South. He also harshly criticized the United States' decision to impose a 50% tariff on Brazilian products. In interviews given Thursday night (10) to TV Globo and Record TV, Lula reinforced Brazil's willingness to seek alternatives to the dollar and stated that the measure adopted by Donald Trump's administration is an attack on sovereignty.

"The BRICS is a forum that represents half the world's population and almost 30% of global GDP. And 10 BRICS countries participate in the G20 (including Brazil), where Mr. Trump participates (on behalf of the US)," Lula told Jornal Nacional. He believes it's necessary to move toward freer, less dollar-dependent models. "We're tired of being subordinate to the North. We want independence in our policies, we want freer trade, and things are happening wonderfully," he said. "We're even discussing the possibility of having our own currency, or perhaps using each country's currencies to trade without needing to use the dollar."

In an interview with Jornal da Record, the president again criticized the dollar's dominance in trade relations. "I'm not obliged to buy dollars to trade with Venezuela, Bolivia, Chile, Sweden, the European Union, or China. We can trade with our own currencies. Why am I obliged to be backed by the dollar, which I don't control? The US is the one with the dollar-producing machine, not us."

According to Lula, Trump's stance should be debated diplomatically, not imposed unilaterally. "If he (Trump) had a disagreement, the right thing to do would be to raise the issue at a G20 meeting. Let's have a civilized discussion, convince us, and let's discuss it. What he can't do is act as if he owns others."

When asked about the possibility of a direct conversation with the former US president, Lula stated that he does not intend to seek him out, but that he will act to protect Brazilian interests by opening new markets. "He, for example, could have called Brazil to inform us of the measures he will take. He didn't send any letter, and we didn't receive any. He published on his website, with a complete lack of respect, that this is his behavior toward everyone. And I am not obliged to accept this disrespectful behavior between heads of state and human relations."

IOF will be maintained

At another point in the Record interview, Lula confirmed that he will maintain the increase in the Financial Transactions Tax (IOF), even after the Supreme Federal Court's (STF) decision to suspend government and Congressional decrees on the matter. According to the president, any budget cuts—such as the R$10 billion currently being considered—would also affect parliamentary amendments, which should lead to a new agreement with Congress.

"The congressman knows that if I have to cut R$10 billion, I'll cut from his amendments too. As they know, and I know, it's important for us to reach an agreement. I can tell you in advance: I'll keep the IOF (Tax on Financial Transactions) tax (IOF). If there's an item in the IOF that's incorrect, we'll remove that item, but the IOF will remain."

Lula also defended the Executive branch's prerogative to issue decrees. "Issuing a decree is the responsibility of the President of the Republic. And parliamentarians can issue a decree-law for themselves if they have committed a constitutional error, which I have not."

Last week, Justice Alexandre de Moraes suspended the Executive decrees that increased the IOF (Tax on Financial Transactions) and also the Congressional decision annulling them. To attempt a negotiated solution, the Supreme Federal Court (STF) scheduled a conciliation hearing between the two branches of government for the 15th in Brasília, Federal District.