Brazilian President Luiz Inácio Lula da Silva declared his country open to foreign companies at the inauguration of Chinese automaker GWM’s factory in São Paulo.

The remarks come as Brazil faces steep U.S. tariffs, which Lula has repeatedly denounced. By making the statement at a Chinese factory opening, Lula signaled a possible pivot further away from Washington and toward Beijing.

Brazil’s President Luiz Inacio Lula da Silva (C-L) and China’s Great Wall Motor (GWM) CEO Mu Feng (C-R) raise their hands during the inauguration of the GWM automobile factory in Iracemapolis, Sao Paulo state, Brazil on Aug. 15, 2025. (NELSON ALMEIDA/AFP via Getty Images)

On Wednesday, the Brazilian government unveiled an aid package for companies hurt by U.S. tariffs. According to Reuters, the package focused on credit lines for exporters and government purchases of products struggling to find new markets. The U.S. tariffs on Brazil are expected to impact the coffee, beef, seafood, textiles, footwear and fruit industries, Reuters reported. 

Earlier this month, Lula told Reuters he was willing to talk to Trump but would not “humiliate” himself by trying to engage while the U.S. president “doesn’t want to talk.” However, Trump has said that Lula is free to “talk to me anytime he wants.”

Brazil’s President Luiz Inacio Lula da Silva and President Donald Trump feud over tariffs and Brazil’s treatment of Bolsonaro. (Adriano Machado/Evelyn Hockstein/Reuters)

Tensions between the two leaders extend beyond tariffs into politics. The Trump administration has lambasted Brazil’s treatment of former President Jair Bolsonaro, who is under house arrest.

Trump commented on the situation in an executive order in which he denounced Brazil’s “politically motivated persecution, intimidation, harassment, censorship, and prosecution” of Bolsonaro.

Lula told Reuters that Brazil’s Supreme Court “does not care what Trump says, and it should not.” He also reportedly said that Bolsonaro was a “traitor to the homeland” who should face another trial for provoking Trump’s intervention.