Gleisi cites social achievements during Lula's government and also condemns Trump's tariff hikes: 'we will overcome blackmail and betrayal'

247 - The Minister-Chief of the Secretariat of Institutional Relations (SRI), Gleisi Hoffmann, wrote a message on Tuesday (5) to highlight the social achievements in Brazil during this third term of President Lula. The head of the ministry took the opportunity to express her repudiation of the trade war launched by US President Donald Trump, who mentioned the investigation into the coup plot against Jair Bolsonaro (PL) as justification for applying a 50% tariff on Brazilian exports. 

"This morning's plenary session of the Council for Sustainable Economic and Social Development was a lesson in democracy. Representatives of Brazil's immense diversity presented President @LulaOficial with proposals for the country in a wide range of fields," Gleisi wrote on the social network X.

In her analysis, the minister also stated that Jair Bolsonaro was running an "authoritarian" and "intolerant" government. The far-right politician is a defendant in the investigation into the coup plot, is subject to precautionary measures, and is under house arrest. 

“Dialogue and social participation that were suppressed in the previous, authoritarian and intolerant government. Brazil has resumed the path of democracy, social justice and respect for human rights. Thus we have managed to get off the Hunger Map again, we will achieve tax justice and overcome great challenges,” published the head of the SRI. 

“This is how we will overcome blackmail and betrayal,” added Gleisi, referring to the 50% tariffs announced by the US, where members of the Trump administration are conditioning the overturning of the tariff hike on the suspension of the proceedings against Bolsonaro. 

Hunger map

Data released during the 2nd UN Food Systems Summit (UNFSS+4), held on February 28th in Ethiopia, confirms that Brazil is no longer included in the Hunger Map. The country has reached a rate below 2,5% of the population suffering from undernourishment – ​​a level that, according to the Organization's criteria, indicates a significant overcoming of the problem.

Evolution of the numbers:

• Between 2019-2021: 3,4% of the population faced hunger (FAO)
• Period 2020-2022: rate rose to 4,2%
• In 2023: decline to 3,9% (equivalent to 8,4 million people)

The UN methodology establishes that when the percentage falls below 2,5%, absolute numbers are not released – a situation that Brazil has recently reached again. The data show a trend of improvement in food security indicators under the current government, following the growth seen in previous years.

Impact of the trade war

Recent studies by FIEMG reveal a worrying scenario: trade barriers imposed by the US could generate accumulated losses of R$ 175 billion for Brazil in the coming years. This significant impact would include:

• Contraction of 1,49% in the national GDP
• Loss of 1,3 million jobs

In the event of Brazilian retaliation with tariffs of 50% on American products, the damage would be even greater:

• Economic decline of R$ 259 billion (2,21% of GDP)
• Nearly 2 million jobs eliminated.
• Reduction of R$ 36 billion in the wage bill.
• Loss of R$ 7,2 billion in tax revenue.

The United States is Brazil's second-largest trading partner, surpassed only by China.

• Brazilian exports to the US: US$ 40,4 billion in 2024 (1,8% of GDP)
• Main products: petroleum, iron ore, industrial equipment, aircraft, and coffee.

The reverse flow is also significant:

• American imports: US$ 60 billion/year
• 6.500 small businesses in the US depend on Brazilian suppliers.
• 3.900 American corporations have operations in the country.

Exempt products

The executive order signed by President Donald Trump on Wednesday (30) exempted 694 Brazilian products from the 50% tariff increase. Among the exceptions are:

• Orange juice and pulp
• Fuels and energy products
• Ores (including iron)
• Fertilizers
• Civil aircraft, engines and components
• Cellulose and wood pulp
• Precious metals

Coffee, fruits, and meats remain subject to a 50% tax rate.

• 45% of exports (US$18 billion in 2024) are exempt.
• 36% (US$14,5 billion) will be taxed at 50%.
• 19% (US$ 8 billion) already have specific tariffs (e.g., 25% for auto parts, 50% for steel/aluminum).

Commercial context:

• Total Brazilian exports to the US in 2024: US$ 40,4 billion
• Tax-exempt products account for 64% of bilateral trade flow.
• Goods in transit will not be affected by the new tariffs.

Sanctions against Moraes

US authorities have decided to impose sanctions against Supreme Court Justice Alexandre de Moraes, ordering the freezing of any assets or financial resources he possesses in US territory. Furthermore, banks and financial institutions are required to inform OFAC (Office of Foreign Assets Control) about any assets linked to the judge, preventing him from conducting transactions or moving funds in the country.

The measure was taken based on the Magnitsky Act, originally created in 2012 to punish Russian agents involved in the death of lawyer Sergei Magnitsky. Subsequently, the legislation was expanded, allowing the US to sanction individuals accused of corruption or human rights violations, even without a formal conviction. The Trump administration had already used this mechanism against Brazilian officials, and now the target is one of the leading figures in the Brazilian judiciary.

In response, Moraes reportedly told allies that the decision "will have no impact" on his life, as he claims to have no accounts, investments, or properties under U.S. jurisdiction. Despite this, the move symbolizes a new chapter in tensions between the U.S. government and Brazilian authorities.