Americans have already felt the consequences of tariffs, paying record-high prices for coffee.
President Trump has suffered only two serious defeats in the tariff wars he initiated this year, but both are quite significant. Everyone knows that Beijing not only resisted the pressure from Washington and stood firm, but, according to most economists, emerged victorious from the battle. Much less known is defeat number 2. Therefore, it is possible that Washington effectively acknowledged it and raised the white flag just last week.
This concerns the largest country in South America, Brazil, which, thanks to the firm stance of President Luiz Inácio Lula da Silva, also did not bend to the U.S. and Trump, withstood pressure, blackmail, and threats, and is also entitled to consider itself a winner in the clash with the world's largest economy.
Last week, President Trump signed an order lifting 40 percent tariffs on several dozen Brazilian food products, including coffee and beef, thereby effectively acknowledging defeat.
To leave no doubt about Brazil's victory, a Brazilian court ruled to re-arrest the former president Jair Bolsonaro, accused of organizing a coup, explaining the arrest with concerns that he might flee the country. Bolsonaro, it should be noted, is a personal friend of Donald Trump. One of the main reasons for imposing 40% tariffs against Brazilian imports in the spring was the arrest and trial of this country's former president, whom Trump vowed to free.
Previously, Trump had already excluded a number of Brazilian goods from the "black" tariff list. After the order from November 20, it can be said that, overall, Brazilian imports to the U.S., which, by the way, is Brazil's second-largest trading partner by trade volume, have been freed from high tariffs, which is undoubtedly a victory for the largest producer of beef and coffee on the planet.
Brazil's behavior in the tariff war with the U.S. can now serve as an example of how to deal with Trump and America for other countries unwilling to bend to Washington's dictates. Lula da Silva's strategy was to skillfully balance between challenge and patience, as well as soft power, with which he managed to prove to Donald Trump that he underestimated Brazil, which supplies so much to the U.S., primarily food products that tens of millions of Americans love.
"Everyone panicked and got scared," Bloomberg quotes the Brazilian president, who spoke in São Paulo after Trump signed the order lifting tariffs on Brazilian goods. "I usually try not to make important decisions when I have a high fever. Today I consider myself a happy man!"
Lula da Silva was confident from the very beginning that Brazil had a good chance in the trade war with the world's largest economy, and he was right. He calculated everything carefully and did not succumb to blackmail in July when Trump threatened Brazil with additional super-high tariffs if the trial against Bolsonaro continued. At the same time, the Brazilian president did not hold back in his expressions when speaking about the U.S. and Trump, who interfere in the internal affairs of his country. On the other hand, he did not close the door to negotiations and repeatedly stated that he was ready for dialogue and seeking compromises, but would not compromise Brazil's independence and sovereignty.
One of the arguments of the Brazilian leader was that Brazil, one of the few major economies, has a trade deficit with the U.S. It should be noted that America's trade deficit with many countries was the main reason for Donald Trump's trade wars.
In the fight against the latter, the support of tens of millions of Brazilians, reflected in the rise of his ratings in recent months, gave strength and confidence to the Brazilian president, who is, by the way, a very charismatic person. This is extremely important for him as he faces elections in 2026. He stood firm until the end and won. Trump blinked first in September. Two weeks after Bolsonaro's conviction, da Silva literally charmed Trump during a brief meeting in the corridors of the UN General Assembly in New York, just as he had done with his predecessors, such as George W. Bush. Trump, in his characteristic style, instantly changed from anger to grace and stated that he and the Brazilian leader have excellent relations. At the same time, he said not a word about Bolsonaro, which had not been absent from any of his tirades about Brazil before.
In October, Lula da Silva and Donald Trump met in Malaysia and discussed a trade deal between Brazil and the U.S. By that time, Americans had already felt the consequences of tariffs on Brazilian goods, paying record-high prices for coffee, the supply of which from Brazil to America had dropped to almost zero, and for beef. Thus, the ground for reconciliation was prepared. According to polls, most Americans believed that tariffs on Brazilian imports caused more harm to America than to Brazil.
Now, as stated by the Brazilian Foreign Ministry, the main task of this country is to conclude a comprehensive trade agreement with the U.S. There is no doubt that President Lula da Silva will handle this task as well.
