Brazil Warns of “Weaponized Trade” Amid U.S. Auto Tariff Hike

Brazil’s Secretary of Foreign Trade, Tatiana Prazeres, raised serious concerns on Thursday over the escalating global trade tensions triggered by U.S. President Donald Trump’s decision to impose a 25% tariff on all imported vehicles, including major auto parts like engines and transmissions.

Speaking at a global trade conference hosted by London’s Chatham House via video link, Prazeres warned that the aggressive use of tariffs threatens to “weaponize” trade and deepen global instability. “What we see today is that trade is being used as a power tool,” she said. “There is a big risk of trade being increasingly weaponised. We don’t know where this will lead us.”

The announcement follows Trump’s earlier decision to place the same 25% tariff on Brazilian steel, prompting President Luiz Inacio Lula da Silva to vow a formal complaint to the World Trade Organization (WTO). Brazil, Prazeres stressed, remains committed to multilateralism and the rules-based trading system upheld by the WTO, despite current strains.

Acknowledging the challenges ahead, Prazeres said, “I don’t think at this time we have the opportunity of promoting major changes. It might get worse before it gets better.”

In response to rising protectionism, Brazil is actively seeking to strengthen global trade ties by expanding its network of trade agreements. Prazeres pointed to the recent European Union-Mercosur free trade deal as a step forward and emphasized Brazil’s commitment to building coalitions with nations that support predictable and stable trade relations.

With rising global economic uncertainty, Brazil is positioning itself as a defender of fair, rule-based international commerce, aiming to counter growing unilateralism and protect its long-term trade interests.