Brazilian President Luiz Incio Lula da Silva on Wednesday vowed reciprocal action, hours after US President Donald Trump announced a significant 50% tariff on Brazilian exports to the United States. Trump explicitly linked the drastic increase in levies to Brazil’s treatment of former President Jair Bolsonaro, who is currently on trial for allegedly plotting a coup.

“Any measure to unilaterally raise tariffs will be responded to in accordance with Brazil’s Economic Reciprocity Law,” Lula’s office stated in a strong declaration, signalling a potential trade war between the two largest economies in the Americas.

This is a developing story.

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