Tensions between the United States and Brazil have suddenly burst open. Brazil’s president promised to reciprocate against President Trump’s tariffs.

Despite the tariff threat, Brazil’s Finance Ministry projected limited economic impact, maintaining its 2.5% GDP growth forecast for 2025. Officials said only specific sectors, like aerospace and energy machinery—heavily reliant on US buyers—might suffer.

Brazilian President Lula da Silva threatens retaliatory tariffs against the US if President Trump imposes increased import taxes due to Bolsonaro's trial. Lula aims for negotiation but warns of reciprocal measures.

The Philippines, Sri Lanka, Algeria, Iraq, Libya, Brunei and Moldova are the latest tariff targets. Read more at straitstimes.com. Read more at straitstimes.com.

By Ricardo Brito BRASILIA (Reuters) -Tensions between the United States and Brazil intensified on Wednesday after Brazil's Ministry of Foreign Affairs summoned the U.S. embassy's chargé d'affaires over a statement defending former Brazilian leader Jair Bolsonaro,

Brazil is urgently responding to U.S. President Trump's new 50% tariffs on Brazilian exports. President Lula convened a cabinet meeting to address the issue, while emphasizing diplomatic solutions. Economic and political tensions are heightened as market impacts are already visible in certain sectors,

Brazil faces persistent inflation and rising market volatility amid U.S. tariff threats, posing serious risks to economic stability.

Brazil believes it can withstand Trump’s 50 percent tariff, and aides to Lula say he is unlikely to shrink from a confrontation with the White House.