Brazilian President Luiz Inacio Lula da Silva on Thursday firmly rejected US President Donald Trump’s criticism of Brazil as a “horrible trading partner,” declaring that his country will not “bow down” to Washington. Speaking in Pernambuco state, Lula called Trump’s claim “a lie” and defended Brazil’s trade practices, saying the nation is “good” but refuses to submit to US demands.

The dispute comes after the US imposed a 50% tariff on Brazilian products, citing human rights concerns over the trial of former president Jair Bolsonaro for allegedly attempting to stay in power illegally. Lula dismissed the accusation, insisting that “democracy is judging Bolsonaro” and that the trial is legitimate.

In response to the tariffs, Brazil unveiled the Sovereign Brazil initiative — a $5.56 billion package offering affordable loans, tax breaks, and other support to exporters, with priority for small businesses and perishable goods producers. The measures include modernising export guarantees, facilitating public procurement from rural and agro-industrial sectors, and reviving a tax refund scheme for the production chain.

Lula said Brazil will not retaliate with reciprocal tariffs “for the time being,” stressing the importance of maintaining dialogue. “We don’t want to worsen our relationship. Initially, we’ll negotiate in good faith,” he said, while criticising Washington’s lack of justification for the trade barrier.

He added that Brazil will not accept accusations of human rights violations, stating that “there is no arbitrary conduct” in Bolsonaro’s trial. Lula framed the crisis as an opportunity for innovation, saying: “Crises exist so we can create new things.”