Trump’s Intention to Impose Vehicle Import Duties has Drawn Criticism From the President of Brazil

While visiting Japan, Brazilian President Luiz Inácio Lula da Silva has taken aim at US President Donald Trump’s move to impose a 25% tariff on all imported automobiles. The ruling is a setback for Japan, the largest automobile supplier to the US, along with Mexico, South Korea, Canada, and Germany—all staunch allies of Washington.

According to what I understand, the US has numerous Japanese manufacturing facilities and imports many Japanese automobiles. Lula remarked, “I genuinely don’t understand the advantage of raising tariffs on automobiles bought from Japan by 25%.

As he intensifies the global trade battle, Trump says the new tariff would boost American industry. However, the news has already hurt stocks and further damaged relations with allies. Many of the parts used by domestic and international automakers with US operations are sourced from other countries.

According to Lula, the only thing he is aware of is that it will increase the cost of auto purchases for Americans. Additionally, this price increase may lead to higher inflation, and since inflation is the goal, interest rates will rise. “A rise in interest rates indicates that the economy is being contained,” he stated.

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