Brazilian officials have downplayed suggestions that former president Jair Bolsonaro's conviction would complicate trade negotiations with the US, while President Luiz Inácio Lula da Silva directly challenged US President Donald Trump's characterisation of the trial as a "witch hunt.”

Speaking to the press over the weekend, Vice President Geraldo Alckmin said there was no connection between the Supreme Court's judicial decision and US trade regulatory policy.

"I don't think so, because there's no connection between the Judiciary's decision and regulatory policy. Import taxes are regulatory policy," he stated, as quoted by Estadão.

Alckmin pointed to Brazil's favourable trade position, noting that eight of the 10 products the US exports most to Brazil face zero tariffs, with Brazil's average import tariff standing at just 2.7%.

"We are constantly working together, because there is no justification for the tariff hike," he said.

The Trump administration last month slapped 50% tariffs on most Brazilian exports in retaliation for the case, sanctioned Justice Alexandre De Moraes for “serious human rights violations”, and announced visa restrictions on other court officials. US Secretary of State Marco Rubio warned that Washington would escalate its response following the far-right leader’s sentencing.

In a September 14 New York Times op-ed, Lula hit back at US allegations that Bolsonaro's conviction resulted from political persecution.

"This was not a 'witch hunt.' The judgment was the result of proceedings carried out in accordance with Brazil’s 1988 Constitution, enacted after two decades of struggle against a military dictatorship," Lula wrote.

The Brazilian president detailed how investigations revealed "plans to assassinate me, the vice president, and a Supreme Court justice" alongside a draft decree "that would have effectively annulled the results” of the 2022 election.

He added that the lack of economic justification behind US measures revealed political motivation aimed at seeking "impunity for former President Jair Bolsonaro, who orchestrated a failed coup attempt."

In his NYT guest essay, Lula also defended Brazil's digital regulations against US accusations of censorship, arguing that all platforms must comply with Brazilian law, saying: "It is dishonest to call regulation censorship, especially when what is at stake is the protection of our families against fraud, disinformation and hate speech."

Last year, Brazil's Supreme Court banned Elon Musk's X social media platform, citing its refusal to name a legal representative in the country and block accounts accused of spreading disinformation, mostly in favour of Bolsonaro. The ban was subsequently lifted after X settled $5.2mn in fines and appointed a representative, but tensions over free speech and defence of democracy remain.

Meanwhile, rating agency Moody's has cautioned that escalating tensions could trigger a reversal of US exemptions on Brazilian products, particularly affecting aircraft, oil, and fruit juice exports currently on tariff exception lists, Estadão reported.

"These agreements could be reversed if tensions escalate," Adrian Garza, Moody's vice president for Latin America, said.

He identified potential risks to Brazilian banks, which could face disrupted cross-border operations and undermined investor confidence. However, he assessed that Brazil's sovereign credit profile faces no immediate exposure to US sanctions, maintaining the country's 'Ba1' rating one notch below investment grade.