Brazilian President Luiz Inácio Lula da Silva has warned of reciprocal 50% tariffs on US goods if US President Donald Trump proceeds with new tariffs on Brazilian imports, scheduled for August 1.

Trump's threat, communicated via social media, explicitly links the tariffs to Brazil's ongoing trial of former president Jair Bolsonaro, calling it a "witch hunt."

Lula called the threat an unacceptable interference in Brazil's internal affairs, asserting Brazil's sovereignty. Although Brazil's Finance Minister Fernando Haddad seeks a diplomatic resolution, Lula stated his country is prepared to protect its interests.

The US currently holds a trade surplus with Brazil, making Trump's unfair trade relationship claim inaccurate, according to Lula. This situation shows a serious escalation that could have repercussions for various industries such as coffee, steel, and oil.