Brazil said it would reciprocate after the US imposed 25% tariffs, a move that has shaken up the South American country’s economy and politics.
Brasília — a rarity on the continent for running a trade deficit with Washington — also unveiled a $2.6 billion package to support the worst-hit industries.
The US and Brazil have blamed each other for the latest salvos of their trade war: President Luiz Inácio Lula da Silva, who is leading the polls ahead of October elections, said challenger Flavio Bolsonaro and his family had courted the tariffs in response to what they say is the political “witch hunt” of Bolsonaro’s father. The Trump administration, which backs the Bolsonaro clan, blamed Lula for being intransigent.
