Brazil Defies Trump Tariff Threats, Backs Dollar-Free BRICS Trade

Brazil is boldly leading a national trade overhaul, defying U.S. pressure as it champions local currency use and strengthens BRICS’ push for financial independence and resilience.

Brazil Pushes BRICS Trade Shift Despite Trump Tariff Threat

Brazilian President Luiz Inácio Lula da Silva said in a June 3 interview with Le Monde that Brazil and its partner nations will continue charting their own economic course, despite recent warnings from U.S. President Donald Trump, Tass reported.

Lula made clear that threats of high tariffs on countries moving away from the dollar in trade settlements would not influence Brazil’s decisions: “Trump’s threats don’t scare anyone. We will act in the interests of our countries and fight for fairer international trade.” While admitting, “It’s not easy,” the Brazilian leader stressed:

Asking Washington for permission to choose the currency we consider most appropriate for our trade transactions is out of the question.

Lula, commenting on Trump’s approach to foreign policy since taking office in January, remarked that Trump was chosen by Americans “to govern the United States, not the entire world.” While asserting Brazil’s sovereign right to determine its trade policy, Lula acknowledged that bilateral relations remain amicable, noting Brazil’s relatively lower 10% tariff exposure compared to other nations. Nonetheless, he signaled readiness to retaliate if diplomacy fails, stating that his ministers had been instructed to exhaust negotiations before resorting to reciprocal tariffs.

Looking ahead to the BRICS summit in Rio de Janeiro on July 6–7, Lula emphasized that the bloc’s goals are constructive rather than confrontational. He dismissed the idea that BRICS intends to position itself against Washington’s influence.

In early 2025, President Trump escalated tensions with BRICS nations by threatening 100% or more tariffs on any member attempting to undermine the U.S. dollar’s dominance. Brazil, holding the BRICS presidency this year, remained resolute, with President Lula emphasizing the bloc’s commitment to diversifying financial tools and reducing reliance on the dollar, despite U.S. pressures. Brazilian officials clarified that their goal isn’t to replace the dollar but to enhance the use of local currencies to lower transaction costs and foster economic independence.

Stressing the growing economic clout of the bloc, Lula asserted: “For too long, countries of the Global South have been seen as merely developing nations that don’t cause trouble.” He opined:

That era is over. BRICS now accounts for 39% of global GDP and more than half of the world’s population. We’ve become a major economic and political force.