Despite the tariff threat, Brazil’s Finance Ministry projected limited economic impact, maintaining its 2.5% GDP growth forecast for 2025. Officials said only specific sectors, like aerospace and energy machinery—heavily reliant on US buyers—might suffer.

Brazil believes it can withstand Trump’s 50 percent tariff, and aides to Lula say he is unlikely to shrink from a confrontation with the White House.

Brazil’s President forcefully rebuked Trump after the U.S. leader called the prosecution of Lula’s predecessor, Bolsonaro, a “witch hunt” and hiked tariffs on the Latin American nation.