Lula Outmaneuvers Trump: Brazil Wins Major Tariff Exemption

President Luiz Inacio Lula da Silva's gamble against Donald Trump paid off on Thursday, as the former US leader exempted dozens of Brazilian food products from the 40% tariffs he imposed earlier this year. The move, announced in an executive order, will leave many of Brazil's major exports free from heightened US duties, a significant victory for the agricultural powerhouse that ranks as the world's largest beef and coffee producer and counts the US as its No. 2 trade partner. According to Vice President Geraldo Alckmin, about 22 of Brazilian exports to the US are now facing tariffs, down from 36. The exemption of coffee and beef products, in particular, is seen as a major win for Brazil's agricultural sector, which has been struggling to cope with the increased tariffs. "This is a significant victory for Brazil and a testament to the strength of our economy," Alckmin said in a statement. "We will continue to work with the US to resolve outstanding trade issues and promote a more balanced and fair trade relationship." The move is also seen as a major victory for Lula, who staked his presidency on the fight with Trump. Lula's government had been working tirelessly to negotiate a trade deal with the US, and the exemption of Brazilian products is seen as a major breakthrough. "We are pleased that the US has recognized the importance of a fair and balanced trade relationship with Brazil," said a spokesperson for the Brazilian government. "This is a significant step forward in our efforts to promote economic cooperation and development between our two countries." The background to the dispute dates back to last year, when Trump imposed the 40% tariffs on Brazilian products in an attempt to help former President Jair Bolsonaro dodge a coup attempt trial. The move was widely seen as an attempt to exert pressure on Bolsonaro's government, but it ultimately backfired. Lula's government had been working to negotiate a trade deal with the US, and the exemption of Brazilian products is seen as a major victory for their efforts. The implications of the move are significant, not just for Brazil but for the global economy as a whole. The US is Brazil's largest trade partner, and the exemption of Brazilian products is seen as a major boost to the country's economy. The move also sets a precedent for other countries that may be facing similar trade disputes with the US. "This is a significant development for countries that are facing trade disputes with the US," said a trade expert. "It shows that it is possible to negotiate a fair and balanced trade deal with the US, even in the face of significant pressure." The current status of the trade talks between the US and Brazil remains uncertain, but officials are optimistic that the exemption of Brazilian products is a significant step forward. "We will continue to work with the US to resolve outstanding trade issues and promote a more balanced and fair trade relationship," said Alckmin. "This is a significant victory for Brazil, and we will continue to build on this momentum to promote economic cooperation and development between our two countries."