Brazil president on Trump tariffs: 'Protectionism does not help any country in the world'
Brazilian President Luiz Inácio Lula da Silva on Thursday criticized the Trump administration’s approach to global trade, saying the newly announced tariffs on global car imports are likely to harm all economies involved.
“This protectionism does not help any country in the world,” Lula said, through an interpreter, adding that President Trump is the leader only of America, not the world.
Trump on Wednesday announced 25 percent tariffs on foreign-made vehicle imports, in his latest escalation of his trade war against other countries. He said the tariffs would take effect April 2 and apply to “all cars not made in the United States.”
Parts made in America would not be subject to the tariffs, but many U.S.-made cars are built with parts that cross the U.S. border multiple times before ultimately getting assembled.
Trump argued the tariffs would encourage foreign car producers to move production into the United States and would boost jobs in the long run. But the tariffs could lead to higher prices for cars in the meantime, as it could increase the cost for manufacturers to bring in certain parts.
“For the most part, I think it’s going to lead cars to be made in one location,” Trump said on Wednesday.
Lula expressed concern about the consequences of the U.S. strategy. He warned American consumers, who will have to pay higher prices for cars, are likely to feel the impact of the new tariffs. That will likely worsen inflation and could lead to higher interest rates, Lula said.
“I am very concerned about the behavior of the American government,” Lula said on Thursday.
He added, through an interpreter: “I am concerned because free trade is being harmed, and I am concerned because multilateralism is weakened.”
Brazil’s president made the remarks at the conclusion of a four-day trip to Japan, which is likely to feel the economic harm acutely. Japan is a major manufacturer of auto parts and the U.S. is its largest customer.
Lula and Japanese Prime Minister Shigeru Ishiba agreed on Wednesday to strengthen partnerships between their countries on trade, the economy and security.
The Associated Press contributed reporting.