Brazil’s leftwing president is standing firm against Donald Trump’s 50 per cent tariff threat, as Luiz Inácio Lula da Silva seizes the confrontation with Washington to revive his re-election prospects.

As Brazil’s Luiz Inacio Lula da Silva and Donald Trump trade blows, the person they are fighting over has sent mixed signals to investors trying to divine who will blink first.

After months of promises to overhaul or eliminate the FEMA, President Donald Trump is touting a fast and robust federal response to the devastating Texas floods. One former agency leader says

In an interview with TV Globo, Lula explained that, for now, he does not intend to call Trump but will defend the Brazilian productive sector by opening new markets. The president noted that the American’s tone is disrespectful and that he will not accept such behavior.

Brazil's Lula pledged support for Prabowo's free nutritious meal program during a meeting in Braslia on July 9, 2025, after the BRICS Summit in Rio.