SAO PAULO (Reuters) -Brazilian President Luiz Inacio Lula da Silva on Thursday said he would not take orders over tariffs from a foreigner, referring to U.S. President Donald Trump, and later called the United States' threatened duty "unacceptable blackmail."
The comments, made during two separate events, mark a continuation of a spat between the two leaders that escalated when the U.S. announced a 50% tariff on Brazil last week.
Trump attributed the tariff, set to start in August, to Brazil's treatment of former President Jair Bolsonaro and to trade practices against U.S. companies that he said are unfair. The tariff announcement came days after Lula called Trump an "emperor" the world does not want.
Lula and members of his cabinet have rejected the reasoning behind the tariffs and insisted on Brazil's sovereignty, while calling for trade negotiations with the United States.
"No foreigner is going to give orders to this president," Lula said in a speech, using the slang word 'gringo', which in Brazil is a common term for foreigners without the pejorative sense it carries in other parts of Latin America.
He added that Brazil would go ahead with regulation and taxation of U.S. tech firms, telling a gathering of leftist student activists in the state of Goias that tech firms are conduits of violence and fake news disguised as freedom of expression.
Later on Thursday, during an evening TV and radio address to the nation, Lula said the defense of Brazil's sovereignty extends to protecting itself against the actions of foreign digital platforms.
During the near five-minute address, Lula said Brazil has been negotiating with the U.S. over tariffs, and repeated that the Latin America country had sent a proposal in May.
"We expected a response, and what we received was unacceptable blackmail, in the form of threats to Brazilian institutions and false information about trade between Brazil and the United States," Lula said.
Brasilia has been holding discussions with industry groups and companies that will be affected by the U.S. tariff, while also readying potential retaliatory measures if talks fall through.
Foreign Minister Mauro Vieira told CNN Brasil separately on Thursday that Lula was open to talks with Trump, who had not yet met each other.
"If the circumstances are given, they will speak," he added.
Lula, who is in his third non-consecutive term as president of Latin America's largest economy, saw his approval ratings start to rebound after the trade spat with Trump last week.
(Reporting by Andre Romani, Fabricio de Castro, Gabriel Araujo and Isabel Teles in Sao Paulo and Bernardo Caram in Brasilia; Editing by Brad Haynes and Christopher Cushing)
