Brazil's President Luiz Inácio Lula da Silva stepped up a confrontation with the US, accusing it of “unacceptable blackmail” over a proposed 50 per cent tariff on Brazilian goods, as the two largest nations in the Americas headed towards a trade war.
The leftwing leader used a televised address to the nation on Thursday to strike a combative stance against the levy threatened by President Donald Trump last week, which would hit Brazil's exports of products such as crude oil, orange juice, beef, coffee and aeroplanes.
Trump upset Brazil by linking the tariff warning to the criminal trial of his ally, hard-right former president Jair Bolsonaro, who is on trial charged with plotting a coup and Lula's assassination after losing an election to him. Trump also complained about Brazil’s treatment of US social media platforms.