Lula says that Brazil will tax Big Techs from the USA and responds to Trump: ‘Brazil is sovereign’

by Andrea
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President criticizes 50% tariff imposed by the US and promises to charge taxes on companies such as Google, Meta and Amazon; measure can be a response to the diplomatic clash with Trump

Ricardo Stuckert/PR e Will Oliver/Pool/EFE/EPA
Lula’s statement comes days after Donald Trump announced commercial sanctions against Brazil

President Luiz Inacio Lula da Silva (PT) said on Thursday (17) that Brazil will tax the Americans. The statement was made during an event of the National Students Union (UNE), in Goiânia (GO), and occurs in the context of growing diplomatic tension with the United States after the imposition by US President Donald Trump, a 50% rate on Brazilian products.

Without presenting technical details about the collection, he said the decision reaffirms national sovereignty. “We will judge and charge tax from US digital companies. This country is sovereign. Here there will be no violence against children, women, blacks, LGBTQia+ in the name of alleged freedom of expression,” said the president. Among the big techs affected by the measure would be Google, Amazon, Meta (Facebook owner, WhatsApp and Instagram) and other giants in the digital sector that operate in the Brazilian territory.

ENGY WITH TRUMP

Lula’s statement comes days after Donald Trump announced commercial sanctions against Brazil, valid from August 1, in response to an alleged “censorship” of US companies and the conviction of former President Jair Bolsonaro (PL), his political ally, by the Supreme Court (STF).

In a letter made public, Trump accused the Lula administration of promoting a “witch hunt” against Bolsonaro and announced the taxation of 50% over all Brazilian products bought by the US. Lula classified the gesture as “disrespectful” and harshly criticized the American. “Brazil likes negotiation. But it will not accept gringo order,” he said.

Response Committee

Following the announcement of the fare, the federal government created an interministerial committee coordinated by vice president Geraldo Alckmin (PSB) to articulate measures against American taxation. The group has already met with entrepreneurs, representatives of agribusiness and US business executives to try to circumvent the crisis.

Despite diplomatic efforts, the Plateau does not rule out triggering the WTO (World Trade Organization) and applying retaliation measures based on the reciprocity law, recently approved by Congress and regulated by Lula’s own decree.

US investigation against Brazil

In addition to the fare, the United States announced a commercial investigation against Brazil, based on section 301 of the US trade act. The inquiry, conducted by UTR (US commercial representation), will assess whether Brazilian policies violate commercial rules in areas such as digital payments, deforestation, ethanol rates, combat corruption and intellectual property protection.

The investigation may result in new economic retaliation, depending on the outcome of the public hearing scheduled for September 3.

Lula, in turn, promised a “civilized but firm” reaction. “Nothing is conquered in Marra. But we don’t accept intimidation either. Let’s act like a country that respects itself,” he concluded.

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