Tariff Threat Linked to Bolsonaro’s Trial
President Donald Trump has threatened to impose a 50% tariff on Brazilian imports starting August 1 unless the country halts the ongoing trial of former President Jair Bolsonaro.
In a letter shared on Truth Social, Trump accused Brazilian President Luiz Inácio Lula da Silva of orchestrating a “witch hunt” against Bolsonaro, who faces charges of attempting to overturn the 2022 election.
Brazil Responds
Lula rejected Trump’s demand, stating on social media: “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage.” He added that Brazil would respond under its Law of Economic Reciprocity if the U.S. follows through with higher tariffs.
This marks a rare instance in recent months of another country threatening reciprocal measures in response to Trump’s tariff policies.
Trade Context
Brazil was not initially included in Trump’s April round of “reciprocal” tariffs, which targeted 21 other nations. Previously, Brazilian goods were subject to a minimum 10% tariff. The U.S. also runs a trade surplus with Brazil, exporting $6.8 billion more in goods than it imports — a factor that could hurt U.S. businesses if Brazil retaliates.
Broader Tariff Campaign
Trump has used tariff threats in the past to influence foreign domestic policies. Earlier this year, he threatened Colombia with escalating tariffs unless it accepted U.S. deportees — a move that ultimately worked. He has also targeted Mexico, Canada, and China over migration and fentanyl-related concerns.
In his letter to Lula, Trump reiterated that companies manufacturing within the U.S. would avoid tariffs — an offer he has made to other nations as well.
Additional Countries Targeted
On Wednesday, Trump sent similar tariff letters to leaders of the Philippines, Sri Lanka, Moldova, Brunei, Algeria, Libya, and Iraq. Proposed rates for these nations range up to 30%, with new tariffs scheduled to take effect August 1 unless agreements are reached.
JPMorgan economists noted the 50% threat to Brazil was particularly surprising and speculated that the tariffs might ultimately not be implemented.
Bolsonaro’s Legal Troubles
Bolsonaro, who maintains close ties to Trump and has been dubbed the “Trump of the Tropics,” faces charges of plotting a coup and possibly assassinating Lula to overturn Brazil’s 2022 election results. Bolsonaro has denied all allegations.
