Brazilian President Luiz Inácio Lula da Silva announced his nation’s openness to foreign enterprises during the inauguration of Chinese automaker GWM’s facility in São Paulo.
These comments arise amidst circumstances that Lula has consistently condemned. By delivering his statement at the opening of a Chinese factory, Lula indicated a potential shift further from Washington and closer to Beijing.
During the ceremony, Lula declared, “Count on the Brazilian government. Whoever wants to leave, leave. Whoever wants to come, we welcome you with open arms.” The news agency reported his remarks and added that he criticized President Trump’s tariffs as “unnecessary turbulence.”
Both Brazil and China are subject to tariffs, albeit at varying levels. Tariffs on Chinese goods, which once reached 145%, are currently at 30% but could increase if Beijing and Washington do not finalize an agreement. Brazil, conversely, is facing a 50% tariff on its exports.
Lula and Chinese President Xi Jinping, both leaders of BRICS nations, held a discussion earlier in the week, preceding the factory’s inauguration. This call came after Lula’s prior announcement that he intended to discuss strategies for responding to U.S. tariffs with his BRICS counterparts.
On Wednesday, the Brazilian government revealed an aid package designed for companies adversely affected by U.S. tariffs. The package primarily concentrates on providing credit lines for exporters and facilitating government procurement of products struggling to secure new markets. Reuters indicated that these U.S. tariffs on Brazil are anticipated to impact sectors such as coffee, beef, seafood, textiles, footwear, and fruit.
Earlier in the month, Lula informed Reuters that he was prepared to engage in discussions with Trump but would not “humiliate” himself by attempting communication if the U.S. president “doesn’t want to talk.” Conversely, Trump has stated that Lula is welcome to “talk to me anytime he wants.”
The strained relationship between the two leaders transcends tariff issues and extends into political matters. The Trump administration has sharply criticized Brazil’s handling of former President Bolsonaro, who is currently under house arrest.
Trump addressed this situation in an executive order, wherein he condemned Brazil’s “politically motivated persecution, intimidation, harassment, censorship, and prosecution” of Bolsonaro.
Lula conveyed to Reuters that Brazil’s Supreme Court “does not care what Trump says, and it should not.” He was also reported to have stated that Bolsonaro was a “traitor to the homeland” who ought to face an additional trial for inciting Trump’s intervention.