Brazil to Big Tech: Obey Our Laws or Leave, Says Lula

On August 6, 2025, Brazilian President Luiz Inácio Lula da Silva issued a direct ultimatum to global tech giants: abide by Brazilian law or exit the country.

Speaking to Reuters, Lula framed the issue as a matter of national sovereignty and insisted that foreign platforms would not be allowed to operate above Brazil’s regulations. “If they don’t want regulation, then let them leave Brazil,” he declared.

The timing is notable, coming at a low point in U.S.-Brazil relations. A day after Lula’s comments, U.S. President Donald Trump imposed sweeping tariffs—50% on Brazilian goods.

The move was ostensibly in protest of Brazil’s legal case against former President Jair Bolsonaro for allegedly plotting a coup after losing the 2022 election.

Trump has tied the tariffs not only to Bolsonaro’s prosecution, but also to growing U.S. frustration over how Brazil is handling American tech platforms and demanding content moderation from them.

Lula’s actions have deeply divided opinion. Supporters praise his defense of Brazil’s courts, especially Supreme Court Justice Alexandre de Moraes.

He now faces U.S. sanctions—not for merely overseeing the Bolsonaro trial, but for alleged permanent judicial overreach, restricting free speech, and fostering what critics describe as a judiciary dictatorship.

They argue Lula’s demand is about safeguarding democracy and protecting the country from disinformation and hate speech that have polarized Brazilian society, similar to European efforts like the Digital Services Act.

Critics, however, warn that hardline tactics could isolate Brazil internationally and damage trade and investment. Some draw historical parallels with Latin American leaders who tried to push out foreign influence, but Lula’s approach is more focused on new digital challenges rather than ideology.

Recent legal moves back Lula’s words. In the past year, Brazil’s Supreme Court has ordered platforms to remove illegal content like hate speech and disinformation, threatening hefty penalties for non-compliance.

Brazil vs. Big Tech and Tariffs

This triggered visible friction with U.S. companies such as X (formerly Twitter). Meanwhile, Brazil’s government is pushing for a new 7% digital services tax on the gross revenues of major international tech firms like Google, Meta, and X, supplementing their existing 15% corporate tax on profits.

Implementation dates are still unclear, partly due to ongoing trade tensions with Washington. On the trade front, Trump has linked his new tariffs not only to tech but also to what he calls unfair legal treatment of Bolsonaro.

Brazil rejects these claims, noting that the U.S. has a $410 billion trade surplus over 15 years, and is challenging the tariffs at the World Trade Organization (WTO).

Lula describes the U.S. stance as “economic bullying” and is rallying support from BRICS partners like India and China for a coordinated reaction, turning down direct talks with Trump in favor of multilateral pressure.

For Lula, the gamble may win praise at home for defending Brazil’s legal system and portraying the country as an equal global player.

Yet the risks are real: investors and tech companies face uncertainty, and higher tariffs could hurt Brazilian exports and raise prices for U.S. consumers, especially on key imports like coffee and metals.

As of August 7, 2025, no major tech platform has left Brazil, but the outcome—likely to be shaped by WTO rulings or BRICS diplomacy—will determine whether Lula’s tough approach secures real benefits or leaves Brazil more isolated in the digital era.