Brazilian President Lula Welcomes Chinese Investment Amid U.S. Tariffs
UPDATE: Brazilian President Luiz Inácio Lula da Silva just announced a major shift in foreign policy, opening his country to Chinese investment amid escalating U.S. tariffs. At the inauguration of Chinese automaker Great Wall Motors (GWM)’s factory in São Paulo on August 15, 2025, Lula’s remarks signal a potential pivot towards Beijing.
“Count on the Brazilian government. Whoever wants to leave, leave. Whoever wants to come, we welcome you with open arms,” Lula declared at the ceremony, echoing sentiments that could reshape Brazil’s economic alliances at a time when the country grapples with a staggering 50% tariff on its goods from the U.S. This bold statement comes as Brazil faces challenges from existing tariffs imposed by the Trump administration, which Lula has criticized as “unnecessary turbulence.”
The inauguration event saw Lula and GWM CEO Mu Feng raise their hands in solidarity, emphasizing their commitment to fostering foreign investment. This development is crucial as both Brazil and China confront tariffs—China’s having peaked at 145% but currently resting at 30%, pending further negotiations with Washington.
Earlier this week, Lula discussed the impact of U.S. tariffs in a call with Chinese President Xi Jinping, a fellow leader within the BRICS coalition. Lula aims to address these trade issues with fellow BRICS members, indicating a unified front against U.S. trade policies.
On the same day as the factory opening, the Brazilian government unveiled an aid package designed to support industries affected by U.S. tariffs. This package focuses on providing credit lines for exporters and government purchases to help businesses struggling to find new markets. According to Reuters, industries like coffee, beef, seafood, textiles, footwear, and fruit are expected to bear the brunt of these tariffs.
While Lula has indicated a willingness to engage in dialogue with Trump, he has firmly stated he will not “humiliate” himself by seeking talks while the U.S. president remains unresponsive. In contrast, Trump has publicly expressed that Lula is welcome to “talk to me anytime he wants,” yet tensions simmer over political issues, including Bolsonaro’s treatment in Brazil.
Lula has openly criticized Trump’s administration for its stance on former President Jair Bolsonaro, who is currently under house arrest. He stated that Brazil’s Supreme Court “does not care what Trump says, and it should not.” Lula additionally branded Bolsonaro a “traitor to the homeland,” suggesting further trials ahead for the former leader.
As Brazil navigates these complex international waters, the implications of Lula’s pivot towards China could resonate throughout the global economy, affecting trade relations and geopolitical alliances. The spotlight remains on how the U.S. will respond to this developing situation and whether further tariffs will be enacted as negotiations with China unfold.
Stay tuned for more updates on this urgent issue as it develops.
