Lula, Xi Blast Tariffs as BRICS Pushes Trade Unity
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Brazil’s Luiz Inacio Lula da Silva decried the use of tariffs as a tool of “blackmail” while China’s Xi Jinping said trade wars were disrupting the global economy during a BRICS summit that took place against the backdrop of Donald Trump’s targeting of the bloc’s members.
Neither Lula nor Xi specifically mentioned Trump or the U.S. during Sept. 8 remarks at a virtual gathering of BRICS countries, the group of emerging market nations formed by Brazil, Russia, India, China and later South Africa that has since expanded to include other countries.
But the Brazilian leaderconvened the meetingto discuss U.S. trade practices that have included the imposition of 50% tariffs on many of his nation’s goods and similar levies against India, and both he and Xi urged BRICS members to stand united in defense of a multilateral system they said is under threat.
“Tariff blackmail is being normalized as an instrument to seize markets and interfere in domestic affairs,” Lula said during the summit, according to written remarks released by Brazil’s government. “Our countries have become victims of unjustified and illegal trade practices.”
Xi, meanwhile, said that “trade wars and tariff wars waged by some country severely disrupt the world economy and undermine international trade rules,” according to state-run Xinhua News Agency. “Countries cannot thrive without an international environment of open cooperation, and no country can afford to retreat to self-imposed isolation.”
The BRICS nations previouslyswiped at Trumpduring their annual leaders meeting in July, drawing threats over what he called “anti-American” policies.
Trump thrust Brazil into the center of his global trade war shortly after the Rio de Janeiro summit, when hepromisedto impose tariffs if its Supreme Court didn’t drop its trial of former President Jair Bolsonaro on coup charges.
In late August, he put 50% tariffson Indian goodsas punishment for its imports of Russian oil.
India’s Narendra Modi did not attend the virtual gathering, sending his foreign minister instead. Russia’s Vladimir Putin, South Africa’s Cyril Ramaphosa and leaders from Egypt, Iran and Indonesia, along with the crown prince of the United Arab Emirates and Ethiopia’s deputy foreign minister, were present, according to Brazil’s government.
Both Xi and Lula called on BRICS nations to defend multilateral approaches to trade and international affairs. They also reiterated the need for developing countries to have increased representation in global governing institutions like the United Nations, a longstanding priority for the bloc.
“BRICS countries account for nearly half of the world’s population, around 30% of global economic output, and one-fifth of global trade,” Xi said at the summit. “We are also home to major natural resources, big manufacturers and vast markets. The more closely we work together, the more resilient, resourceful and effective we are in addressing external risks and challenges.”
Xi also urged BRICS countries to strengthen cooperation in trade, finance and technology in a bid to pool strength for development. He reaffirmed Beijing’s commitment to the Global Development Initiative and the Belt and Road Initiative.
“It is up to BRICS to show that cooperation overcomes any form of rivalry,” Lula said. “We have the necessary legitimacy to lead the renewal of the multilateral trading system on modern, flexible foundations geared to our development needs.”
In his speech, Ramaphosa said developing nations are facing “great hardships and danger” and that South Africa has already experienced negative economic effects from the trade upheaval.
Like Lula and Xi, he called on BRICS to “play a critical role in strengthening the multilateral system.”
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