The President of Brazil, Luiz Inácio Lula da Silva, expressed his support for the BRICS right to consider the possibility of replacing the dollar as the reference currency in financial transactions. Despite warnings from Donald Trump, President of the United States, about imposing tariffs if this were to happen, Lula defended the need to discuss alternatives that do not rely exclusively on the dollar.
In an interview with local radios, Lula mentioned that the BRICS member countries, which include Brazil, China, Russia, India, and South Africa, represent almost half of global trade and should not be concerned about Trump's threats. According to the Brazilian leader, it is essential for BRICS to address what is important to them and stated that no country can afford to confront all nations.
Regarding the possibility of the United States imposing a 100 percent tariff if emerging nations decide to forego the dollar, Lula assured that Brazil would be prepared to respond with "reciprocity" if necessary. He also highlighted the importance of peace and calm in international relations and emphasized that Brazil does not seek conflicts with other countries, including the U.S.
Lula also emphasized the positive trade relations between Brazil and the United States, stressing the surplus Brazil has in its trade with the northern country, a factor that according to Trump may influence the imposition of tariffs. In this context, Lula's statements come amid Trump's imposition of tariffs on both Mexico and Canada, which he later suspended after reaching an agreement, as well as on China, which generated a retaliatory tariff response from the Asian giant.
