Brazilian President Luis Inacio Lula da Silva today criticized the decision of US President Donald Trump to raise US customs duties on a large group of commodities, saying that Trump should consider the potential harm to the American and global economies.
Lula Da Silva made these statements upon the conclusion of his 4 -day visit in Japan after Trump’s decision to impose a 25% fee on car imports a painful blow, since Japan is the most prominent source of cars and an ally country for America.
It is noteworthy that the United States is the largest destination for Japanese car exports.
“I am very concerned about the behavior of the American government,” Lula Da Silva said, adding that “I am concerned that free trade is being damaged, and I am concerned because the multilateral system is weakened.”
The Brazilian President stressed that he does not see any positive results from Trump’s policy of raising fees since this will lead to raising prices for American consumers, which will exacerbate inflation and lead to raising interest rates, and this is likely to hinder economic growth.
He explained that Trump is only president of the United States, not the world, considering that “this protectionism does not help any country in the world.”
Brazil is the largest source of steel to the United States, and Lula da Silva said he is considering submitting a complaint to the World Trade Organization, and it may impose customs duties on America as a reaction.
It is noteworthy that Brazil is not at the top of the Trump list for the commercial response, as the United States is its second largest commercial partner and export it more than it imports from it.
The most important exports of Brazil to the United States were oil, iron and steel, while its largest imports from the United States were crude and refined oil, gas turbines, aircraft, chemicals and machinery.
For his part, Japanese Prime Minister Shighgero Ishiba affirmed his desire to exempt his country from these customs duties.
Ishiba agreed that without Da Silva strengthening partnerships between Japan and Brazil in the fields of economics, trade and security.
Japanese cabinet secretary Yoshimasa Hayachi said that Trump’s decision on car fees was “very unfortunate”, and Japan has strongly urged its exemption.
