Decision to hit Brazil with 25% tariffs becoming ‘election gift’ to President Lula, predecessor Bolsonaro tells US

Summary

(Bloomberg) — The US decision to hit Brazil with 25% tariffs renews a trade fight with President Luiz Inacio Lula da Silva’s government just months ahead of elections, potentially influencing the outcome of a highly polarized race. While the Trump administration cited unfair trade practices for imposing tariffs on certain Brazilian goods from July 22, the impact may end up political with presidential elections due in October. Lula , as Brazil’s president is known, has successfully rallied public opinion behind him when faced with earlier US trade pressure. He is set to face off with right-wing Senator Flavio Bolsonaro, who flew to the US earlier this month to testify against the trade penalties then under consideration, saying they’d only help the leftist leader’s re-election bid. “The proposed tariffs would reward the very offenders they are meant to punish,” Bolsonaro wrote in his submission to the Office of the US Trade Representative. Those appeals from the son of former President Jair Bolsonaro , an ally of Donald Trump, appear to have been set aside during the US investigation. Brazilian business groups have already started criticizing the measure, warning it could deal a significant blow to the country’s exporters. The yearlong inquiry “found a number of Brazil’s practices to be unreasonable and discriminatory, restricting the competitive position of American farmers, workers, innovators, and exporters,” the Office of the US Trade Representative said in a post on X late Wednesday. US Trade Representative Jamieson Greer said the action was necessary “to address these unfair trade practices to ensure American workers and companies can compete on a level playing field.” The US remains open to negotiations to address the issues identified, he said in a statement. On Monday, a Brazilian Supreme Court justice barred Flávio Bolsonaro from visiting his father for 90 days, effectively preventing any visits until after the first round of October’s election. Stay updated with the latest Trending , India , World and US news.