Tariffs. Xi expresses support for Lula and condemns protectionism

Chinese President Xi Jinping condemned "protectionism" on Tuesday during a telephone conversation with his Brazilian counterpart, Lula da Silva, after the United States recently imposed tariffs on Brazilian products.

"All countries should unite and firmly oppose unilateralism and protectionism," Xi said, according to a statement from the Chinese Foreign Ministry.

The head of state indicated that China "supports the Brazilian people in defending their national sovereignty and Brazil in protecting its legitimate rights and interests," without directly mentioning the US tariffs.

Xi stated that Sino-Brazilian relations “are at the best historical moment” and that the harmonization of the development strategies of both countries “is advancing smoothly.”

Beijing is "willing to work with Brazil to seize opportunities, strengthen coordination and achieve more mutually beneficial cooperation," he added.

The Chinese leader also considered that the two countries can set "an example of solidarity and self-sufficiency among the major powers of the Global South and jointly build a fairer world and a more sustainable planet."

According to Beijing, the call was made at the request of Lula, who informed Xi about recent progress in Brazil-US relations and reiterated Brasília's "principled stance" in defense of its sovereignty.

The Brazilian President praised “China’s adherence to multilateralism , its defense of free trade norms and its responsible role in international affairs.”

In July, the United States imposed a 10% tariff on all Brazilian products and an additional 40% tax on some specific goods, leading Brasília to ask the World Trade Organization (WTO) to open a consultation process.

The National Confederation of Industry (CNI) estimated that these tariffs could reduce Brazilian GDP by 0.16%.

Xi and Lula met last May in Beijing , as part of the 4th China-CELAC (Community of Latin American and Caribbean States) Ministerial Meeting, where they stated that they were “determined to unite against unilateralism and protectionism” and expressed support for “fair, rules-based trade.”

China has been Brazil's largest trading partner since 2009 , with bilateral trade reaching a record 157.5 billion dollars (135.5 billion euros) in 2023, generating a surplus of 51.1 billion (almost 44 million euros) for the South American country.

Beijing recently authorized 183 new Brazilian companies to export coffee to the Chinese market, shortly after Washington announced tariffs on Brazilian products.

In addition to trade, the two countries have strengthened geopolitical coordination and jointly advocated for a ceasefire in the conflicts in Gaza and Ukraine.

Despite the bilateral rapprochement, Xi missed the annual summit of the BRICS bloc of emerging economies in June in Rio de Janeiro, of which China and Brazil are founding members.