President of Brazil States That US Tariff Hikes Provoking Global Stagnation

Brazilian President Luiz Inácio Lula da Silva expressed the opinion that the tariff increases implemented by the United States are damaging the global economy, leading to stagnation and inflation. His remarks were reported by RIA Novosti, citing an article in The Guardian.

On July 10, amid the announcement of additional tariffs on Brazilian goods by the US, Lula stated that Brazil would impose reciprocal tariffs on American products starting August 1 if an agreement on the new restrictions, announced by Washington, could not be reached.

"The rights of the strong also threaten the multilateral trading system. Massive tariffs disrupt value chains and plunge the global economy into a spiral of high prices and stagnation," the publication says.

The Brazilian leader also noted that the World Trade Organization (WTO) is in crisis and has not addressed the Doha Round negotiations, which took place in 2001 and focused on international trade rules.

During a meeting of G20 foreign ministers in 2024, Lula emphasized the need to rethink the principles governing the international trading system.