Brazilian President Luiz Inácio Lula da Silva stood beside Chinese executives in São Paulo and declared that his country was “open to foreign companies.” The stage he chose — the inauguration of a massive Chinese automaker’s factory — was not just symbolic, it was a signal. With steep U.S. tariffs biting hard into Brazil’s exports, Lula is looking eastward, positioning his nation closer to Beijing at a moment of intense trade tension.
Lula didn’t hold back in his remarks, taking a swipe at President Trump’s policies. He called the tariffs “unnecessary turbulence,” a phrase meant to highlight the disruption he believes Washington has created. His choice of words wasn’t new — he has been railing against U.S. trade measures for months — but the timing and backdrop gave the criticism fresh weight.
For Trump, tariffs are leverage in a broader struggle with both Brazil and China. Beijing once faced duties as high as 145% but now sits at 30% — a rate that could climb again if negotiations stall. Brazil, meanwhile, is facing a painful 50% tariff on its goods, hitting staples like coffee, beef, seafood, textiles, footwear, and fruit. The industries form the backbone of Brazil’s export economy, and Lula’s government knows it can’t afford to let them collapse.
In a call with Chinese President Xi Jinping earlier in the week, Lula discussed strategies for countering Washington’s pressure. Both leaders, prominent figures within BRICS, see an opportunity to align their countries more closely as trade tensions deepen. Brazil has even rolled out an aid package at home, offering credit lines and government purchases to help exporters find markets beyond the United States.
The friction between Trump and Lula isn’t limited to trade. Washington has taken a strong stance against the Brazilian government’s handling of former President Jair Bolsonaro, who is under house arrest. In an executive order, Trump denounced what he described as Brazil’s “politically motivated persecution” of Bolsonaro, accusing Lula’s government of intimidation and censorship. Lula shot back, saying Brazil’s Supreme Court “does not care what Trump says” and even branded Bolsonaro a “traitor to the homeland.”
Behind the personal jabs and political theater, the economic reality looms large. If Brazil doubles down on Beijing, it would strengthen China’s influence in the Western Hemisphere at a moment when the United States is trying to rein it in. And for Trump, who has made fair trade and American strength a central part of his presidency, Lula’s pivot is more than an insult — it’s a potential crack in Washington’s regional dominance.
Whether this marks a temporary maneuver or a long-term realignment remains to be seen. But by standing with China at such a delicate moment, Lula has thrown a match into an already tense standoff. The question now is how Trump — and America’s allies — will respond.
