Meeting Cancellation Sparks Diplomatic Crisis
Brazilian Finance Minister Fernando Haddad confirmed the abrupt cancellation of his scheduled virtual meeting with U.S. Treasury Secretary Scott Bessent, dealing a significant blow to bilateral relations. The talks, initially set for Wednesday, were intended to address punitive 50% tariffs imposed by the Trump administration on Brazilian goods including orange juice, aircraft, and wood pulp. Despite Brazil’s request to reschedule, no new date has been offered, a move Haddad called "unusual" and indicative of Washington’s disregard for trade discussions.
Political Retaliation Alleged
Haddad condemned the tariffs as politically motivated, linking them to the ongoing trial of former President Jair Bolsonaro, who is Trump’s ally faces charges over an alleged 2023 coup attempt. He specifically criticized "pseudo-Brazilians" in Washington, referencing Bolsonaro’s son Eduardo, who has lobbied for sanctions against Brazilian officials since March. The Trump administration explicitly tied the tariffs to Bolsonaro’s legal troubles, demanding Brazil’s Supreme Court drop the case.
Brazil’s Countermeasures
In response, Brazil has initiated a multi-pronged strategy. They filed formal disputes against the U.S. for violating General Agreement on Tariffs and Trade (GATT) rules. They also announced executive orders to reform the Export Guarantee Fund (FGE), expand credit access, and support government procurement for 10,000 affected companies. Brazil has also begun prioritizing trade deals with Southeast Asia and accelerating Mercosur-EU negotiations to reduce U.S. dependency.
Geopolitical Realignment Intensifies
The crisis has accelerated Brazil’s pivot toward BRICS partners. President Lula da Silva held a 40-minute call with Russia’s Vladimir Putin to strengthen economic collaboration, following earlier coordination with India’s Narendra Modi on a unified response to U.S. tariffs. Meanwhile, Brazilian exporters face immediate fallout: wood pulp producers have initiated layoffs, while orders for chemicals and plastics remain frozen indefinitely.