Brazil Weighs Measures On US Dividends, Tech Firms, Reports Say

Brazil’s government is studying potential responses to further sanctions by US President Donald Trump, including a limit on dividend payments by US companies with operations in Brazil, according to O Estado de S. Paulo newspaper.

President Luiz Inacio Lula da Silva’s government is intensifying its deliberations on possible measures after the US government announced it was revoking visas for some Brazilian Supreme Court justices. The move came after Justice Alexandre de Moraes sent police to raid the home of ex-President Jair Bolsonaro ahead of his trial on charges he attempted a coup to remain in power.

Finance Minister Fernando Haddad denied Brazil is considering limits on dividends as a retaliation against the US, Reuters reported, citing a statement. 

The Brazilian government is also considering ending the licensing of US drug patents and levying taxes on big tech firms, according to O Estado de S. Paulo and O Globo. It hasn’t made a decision and any measures will require Lula’s approval, the newspapers said. 

The government intends to continue diplomatic negotiations with the Trump administration, O Estado de S. Paulo said, adding that any retaliatory measures may be adopted after Aug. 2. The US government has announced a 50% tariff on Brazil that will take effect on Aug. 1, which Trump has tied to the charges against Bolsonaro. 

The government is studying a tax on digital services offered by big tech companies, with different rates depending their revenues, O Globo reported, saying the measure is being analyzed by Finance Ministry. 

Lula said on Saturday he’s certain that “no kind of intimidation or threat from anyone” will compromise the nation’s institutions in their mission to defend the rule of law.

“The interference of one country in the judiciary of another is unacceptable and violates the basic principles of respect and sovereignty between nations,” according to a statement published by Brazilian president offering support to the Supreme Court’s justices.