Lula rejects US 25% tariffs and requests study on American workers

President Luiz Inácio Lula da Silva rejected on Wednesday (10) the 25% tariffs that the United States proposed on Brazilian products, stating that the country has no "right to accept out of dignity and respect" for national workers. The statement was made during a meeting of the Economic, Social and Sustainable Development Council at the Itamaraty Palace, in response to the Section 301 determination published by the US Trade Representative (USTR) office on June 1st. ✓

The American measures, based on Section 301 of the Trade Act of 1974, consider Brazilian practices related to digital trade, electronic payments, preferential tariffs, anti-corruption efforts, intellectual property, ethanol market access and illegal deforestation as "unreasonable." According to legal analysis by Thompson Hine, USTR proposes applying 25% tariffs on all Brazilian goods, with exceptions for informational materials, donations, accompanied baggage and products already subject to Section 232 tariffs. ?

The economic impact of the tariffs affects US$9.3 billion — about 25% of Brazilian exports to the US, which totaled US$37.7 billion in 2025, according to data from the Ministry of Development, Industry, Trade and Services (MDIC). Bilateral trade flow reached US$82.8 billion in 2025, with a trade deficit of US$7.5 billion for Brazil. ✓

Lula requested an "urgent study" on American wages and labor rights, questioning the criteria used by the US to sanction other countries. "I want to know what rights American workers have for some financial director to impose fines against deforestation," he declared. The Brazilian government evaluates that the recommendations have a political character and disregard technical arguments presented since the investigation began in July 2025. ✓