MercoPress. South Atlantic News Agency

Trump slaps 50% tariffs on all Brazilian products

These tariffs can be modified, up or down, depending on the relationship with your country, Trump told Brasília

US President Donald Trump on Wednesday sent a letter to his Brazilian colleague Luiz Inácio Lula da Silva announcing a 50% tariff on all products from the South American country and criticizing the judiciary's procedures against former President Jair Bolsonaro. The tariffs will take effect on August 1, Trump noted.

Bolsonaro is on trial before the Federal Supreme Court (STF) for attempting a coup d'état. Trump also highlighted STF orders issued against supporters of the former Brazilian president who reside in the United States.

Read also: Lula publishes strong reply to Trump's statements

“The way Brazil has treated former President Bolsonaro, a leader who was highly respected around the world during his term, including by the United States, is an international disgrace. This trial should not be taking place. It is a witch hunt that must end IMMEDIATELY!” Trump wrote.

The US president justifies the tariff measure by citing alleged “insidious attacks by Brazil against free elections and the fundamental violation of Americans' freedom of expression.”

“Starting August 1, 2025, we will charge Brazil a 50% tariff on all Brazilian exports sent to the United States, separate from all existing sectoral tariffs. Goods transshipped to try to avoid this 50% tariff will be subject to this higher tariff,” he further explained.

This week, Trump and Lula also exchanged criticism over the BRICS summit, a bloc that brings together the world's largest emerging economies, in Rio de Janeiro. Trump even threatened the countries in the group with trade tariffs, which is now materializing in the Brazilian case.

Trump also accused Brazil of engaging in unfair trade with the United States. “We have had years to discuss our trade relationship with Brazil and have concluded that we need to move away from the long and very unfair trade relationship created by Brazil's tariffs and tariff and non-tariff barriers. Our relationship, unfortunately, has been far from reciprocal. Please understand that 50% is much less than what would be necessary to achieve a level playing field in our trade with your country. And this is necessary to correct the serious injustices of the current system,” Trump wrote.

The Republican leader's statement contradicts the trade flow figures between Brazil and the United States. Together, the two countries have a trade volume of about US$80 billion per year. When considering the trade balance (exports minus imports), the United States has a surplus of US$200 million with Brazil.

“If for any reason you decide to increase your tariffs, whatever the amount chosen, it will be added to the 50% we will charge. Please understand that these tariffs are necessary to correct Brazil's many years of tariffs and tariff and non-tariff barriers, which have caused these unsustainable trade deficits against the United States. This deficit is a major threat to our economy and, in fact, to our national security!” he threatened.

“If you wish to open your commercial markets, which have been closed until now, to the United States and eliminate your tariffs, non-tariff policies, and trade barriers, we may be able to consider an adjustment to this letter. These tariffs can be modified, up or down, depending on the relationship with your country. You will never be disappointed with the United States of America,” added the US president.

The US leader also ordered an investigation into what he called “Brazil's ongoing attacks on the digital commercial activities of American companies” in Brazil. (Source: Agencia Brasil)