Trump tied the levy, which is more severe than those facing dozens of other countries, to Brazil’s prosecution of former president Jair Bolsonaro over an alleged attempted coup following the 2022 election, when Bolsonaro was defeated by President Luiz Inacio Lula da Silva.
In a letter addressed to President Luiz Inacio Lula da Silva, Trump criticized the treatment of Bolsonaro as an “international disgrace,” adding that the trial “should not be taking place.” He also said Washington would launch an investigation into Brazil’s trade practices.
The latest tariff threat from America came after Brazil said it had summoned the US charge d’affaires in a diplomatic row over Trump’s earlier criticism of the coup trial of Bolsonaro. Bolsonaro denies he was involved in an attempt to wrest power back from Lula in an alleged coup plot prosecutors say failed only for a lack of military backing.
But Trump previously urged Brazilian authorities to “LEAVE BOLSONARO ALONE” in a social media post. In unveiling the 50 percent tariff Wednesday, Trump cited “Brazil’s insidious attacks on free elections,” among other issues, warning of further escalation if the country retaliated.
While the US president has been issuing letters to trading partners, focusing on those his country runs a deficit, Brazil had not been among those threatened with higher duties come August 1.The tariffs starting Aug. 1 would be a dramatic increase from the 10% rate that Trump levied on Brazil as part of his April 2 “Liberation Day” announcement. In addition to oil, Brazil sells orange juice, coffee, iron, and steel to the U.S., among other products. The U.S. ran a $6.8 billion trade surplus with Brazil last year, according to the Census Bureau.The Brazilian real dove more than two percent against the US dollar following Trump’s tariff announcement on the country’s goods. Near 20H48 GMT, the Brazilian currency was down 2.1 percent at 5.5609 per dollar.
Trump initially announced his broad tariffs by declaring an economic emergency, arguing under a 1977 law that the U.S. was at risk because of persistent trade imbalances. But that rationale becomes problematic in this particular case, as Trump is linking his tariffs to the Bolsonaro trial, and the U.S. exports more to Brazil than it imports.
