Lula government considers taxing big techs in reprisal to Trump’s tariffs, says newspaper

by Andrea
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The President’s Government Luiz Inácio Lula da Silva Evaluates US digital platforms if US President Donald Trump, officialize a. The information is from S.Paulo Folha.

The measure was already being discussed for months in the Brazilian government and could be anticipated as a response to Trump’s protectionist action, said columnist Monica Bergamo.

Brazil is the second largest exporter of steel for the US, with 48% of its external sales directed to the US market, which represented US $ 5.7 billion in 2024.

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Sources alongside the matter told the newspaper that Planalto Palace prefers to wait before making any decision, as Trump has already retreated from similar measures in the past. Still, the government understands that it cannot ignore American tariffs without a reaction.

According to the report of Sheetthe taxation of Big Techs would be a strategic alternative because it is already debated in the organization for Economic Cooperation and Development (OECD) and adopted in countries such as Canada. In addition, it would prevent inflationary impacts in Brazil, unlike retaliation on US imported products.

Platforms that can be hit by the measure are companies such as Amazon (AMZN), Google (Googl), Facebook (), Instagram and Spotify (). The streaming service, for example, has several subscribers in Brazil, but, according to the government, does not pay adequate taxes on their operations in the country.

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The Canadian government’s proposal, for example, provides for a 3% rate on the revenue obtained by digital platforms with services based on engagement and data from local users. Brazil would adopt a similar model if you decide for taxation.

Haddad Nega

Following the publication of the report, Finance Minister Fernando Haddad denied that the Brazilian government is evaluating US digital platforms if Trump actually raises steel and aluminum tariffs

“In order not to leave doubt, the information is not correct that the Lula government must tax technology companies if the United States government imposes tariffs to Brazil,”.

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