I decided to write this essay to establish an open and frank dialogue with the president of the United States. Over decades of negotiation, first as a union leader and later as president, I have learned to listen to all sides and to take into account all the interests at stake. That is why I have carefully examined the arguments that have been put forward by the Trump administration to impose a 50 percent tariff on Brazilian products.
Bringing American jobs back and reindustrialization are legitimate motivations. When in the past the United States has raised the banner of neoliberalism, Brazil warned of its harmful effects. Seeing the White House finally acknowledge the limits of the so-called Washington Consensus, a policy prescription of minimal social protection, unrestricted trade liberalization and overall deregulation dominant since the 1990s, vindicated the Brazilian position.
But resorting to unilateral action against individual states is to prescribe the wrong remedy. Multilateralism offers fairer and more balanced solutions. The tariff increase imposed on Brazil this summer is not only misguided but illogical. The United States is not running a trade deficit with our country, nor is it subject to high tariffs. Over the past 15 years, it has accumulated a surplus of $410 billion in bilateral trade in goods and services. Nearly 75 percent of U.S. exports to Brazil enter duty-free. By our calculation, the average effective tariff on American products is just 2.7 percent. Eight out of the 10 main items face zero tariffs, including oil, aircraft, natural gas and coal.
The lack of economic rationale behind these measures makes it clear that the motivation of the White House is political. The deputy secretary of state, Christopher Landau, reportedly said as much earlier this month to a group of Brazilian business leaders who were working to open negotiation channels. The U.S. government is using tariffs and the Magnitsky Act to seek impunity for former President Jair Bolsonaro, who orchestrated a failed coup attempt on Jan. 8, 2023, in an effort to subvert the popular will expressed at the ballot box.
I am proud of the Brazilian Supreme Court for its historic decision on Thursday, which safeguards our institutions and the democratic rule of law. This was not a “witch hunt.” The judgment was the result of proceedings carried out in accordance with Brazil’s 1988 Constitution, enacted after two decades of struggle agains
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