Finance Minister Fernando Haddad (PT) called São Paulo Governor Tarcísio de Freitas’ (Republicanos) political support for Donald Trump "naïve" during a televised interview on Thursday [1].
The dispute highlights a growing rift between Brazilian federal and state leadership as the U.S. implements trade policies that threaten Brazil's industrial core. Because São Paulo is the nation's primary economic engine, the intersection of international tariffs and domestic political alliances creates significant friction between the two officials.
Speaking on Jovem Pan News on July 16 [1], Haddad said that aligning with the U.S. administration is counterproductive given recent economic pressures. He specifically cited the imposition of new U.S. tariffs on Brazilian products as a direct threat to the economy [2].
"It is naïve to support Trump when he wants to privatize Pix and still increases tariffs that harm Brazil," Haddad said [1].
The minister said that the impact of these trade barriers would not be felt equally across the country. He said that the state of São Paulo will be the most harmed by the U.S. decision to apply new tariffs to Brazilian goods [2].
Beyond trade, Haddad raised concerns regarding the digital infrastructure of Brazil's financial system. He said that there are efforts to privatize Pix, the state-run instant payment system that has become central to Brazilian commerce [1].
Governor Freitas has maintained a political stance supportive of the U.S. president, despite the escalating trade tensions. This alignment has drawn criticism from the PT-led federal government, which views the support as a misalignment of national interests in the face of protectionist U.S. policies [1], [2].
“"It is naïve to support Trump when he wants to privatize Pix and still increases tariffs that harm Brazil."”
This confrontation signals a deepening ideological and strategic divide between Brazil's federal government and its most powerful state. By linking the Governor's international political preferences to tangible economic losses—specifically through U.S. tariffs and the potential privatization of Pix—the Finance Minister is attempting to frame the support of the U.S. administration as an economic liability for São Paulo's industrial sector.
