The relationship between Brazil and China is expected to strengthen further following US President Donald Trump’s announcement of a 50% tariff on Brazilian imported goods. Brazilian President Luiz Inacio Lula da Silva recently described the relationship between the two countries as “indestructible” during his third meeting with Chinese President Xi Jinping since returning to office in 2023.
According to Tulio Cariello, director of content and research at the Brazil-China Business Council, “The reality is that, today, the relation between Brazil and China is much more positive and promising than the one with the United States.” This sentiment is echoed by experts who believe Trump’s tariffs will drive Brazil closer to China.
The 50% tariff, set to take effect on August 1, has sparked widespread condemnation across Brazil’s political spectrum and from China. In a letter justifying the tariff, Trump directly tied the measure to former Brazilian President Jair Bolsonaro’s current predicament, calling it a “witch hunt”. Bolsonaro is facing trial for allegedly attempting to orchestrate a coup to remain in power despite his 2022 election loss to Lula.
A spokesperson for China’s Ministry of Foreign Affairs said, “Tariffs should not be a tool of coercion, intimidation, or interference.” Experts warn that using tariffs for political leverage rather than economic reasons risks tarnishing the US’s reputation as a reliable trade partner, making China appear more stable and predictable by comparison.
The Asian country overtook the US as Brazil’s biggest export market in 2009, and trade and investment ties have only grown stronger since then. Brazil’s Ministry of Finance recently announced plans to establish a tax advisory office in Beijing, citing the growing importance of bilateral trade relations and the need to deepen cooperation on fiscal and customs matters.
China has invested over $73 billion in Brazil since 2007, with much of those funds pouring into strategic sectors such as energy, infrastructure, agribusiness, and technology. Mauricio Weiss, an economics professor at the Federal University of Rio Grande do Sul, notes that “The United States still invests more heavily in Brazil, but China’s investments are more targeted and coordinated between governments.”
Chinese products are becoming increasingly common in Brazil, with electric cars made by Chinese manufacturer BYD now accounting for seven out of 10 electric vehicles sold in Brazil. BYD’s purchase of a massive factory previously owned by Ford in Brazil’s northeastern state of Bahia is a notable example of China’s growing presence.
While some experts believe the deepening relationship between China and Brazil won’t necessarily lead to Brazil exporting goods it currently sends to the US to China, Chinese investments could play a crucial role in enabling Brazil to boost its industrial capacity and diversify its economy.
As Lula said during a state visit to China in May, “Brazil and China will be indispensable partners because China needs Brazil and Brazil needs China.” He added, “Together, we can make the Global South respected in the world like never before.”