Donald Trump has vowed to impose a 50% tariff on Brazilian goods

Donald Trump has vowed to impose a 50% tariff on Brazilian goods, accusing the South American nation of undermining free speech, a move that significantly escalates tensions between the US and Brazil.

Trump wrote that Bolsonaro, who was facing charges over an alleged coup plot, was a highly respected leader worldwide during his term. He branded the case a “Witch Hunt that should end IMMEDIATELY!

He mentioned that the tariff would start on August 1 and would be used in part due to Brazil’s sneaky attacks on Free Elections and the basic Free Speech Rights of Americans.

Trump puts pressure on trading partners to make a deal or face a tariff

The US president also slammed Brazil’s Supreme Court for allegedly handing down hundreds of secret and unlawful Censorship orders against US social media platforms and threatening them with millions of dollars in fines and eviction from the country.

Following Trump’s remarks, Brazil’s currency slid 2.3%, falling to R$5.58 against the Us dollar during afternoon trading in New York. Meanwhile, futures tied to Brazil’s Bovespa stock index extended their losses, down 2.3% by evening trading in São Paulo.

The letter to Brazil was the eighth in a series of letters Trump sent out on Wednesday, July 9, and is part of a larger sweep targeting 22 nations in recent days as he pushes to put pressure on trading partners to make a deal or face a tariff.

Earlier that day, Trump had already imposed 25–30% tariffs on countries including Algeria, Brunei, Iraq, Libya, Moldova, the Philippines, and Sri Lanka. These letters followed threats of 25% tariffs against Japan, South Korea, and others.

Lula da Silva responded to Trump’s 50% tariff threats, stating that Brazil is a self-governing nation with its own institutions that will not allow anyone to control them. 

He then claimed that Trump’s accusations were false, asserting that in Brazil, freedom of expression should not be mistaken for aggression or violent actions. According to Lula, all companies from Brazil or other countries must follow Brazilian laws to do business there.

Geraldo Alckmin calls on Trump to remove the new US tariff on Brazilian imports

While near-identical letters were sent to other countries affirming the strength and commitment of the US trading relationship, the message to Latin America’s largest economy took on a sharply different tone.

The proposed 50% tariff far exceeds the 10% duty already levied on Brazil as part of the “reciprocal” tariffs announced on April 2.

After Trump signaled a new wave of import taxes targeting South American nations, Brazil’s Vice President and Trade Minister Geraldo Alckmin criticized the move, calling it “inappropriate.” He emphasized that Brazil is not a problem for the Us, citing economic data in the country’s defense.

Addressing reporters in Brasília, Alckmin argued there was no justification for higher tariffs on Brazilian goods, noting that the US has a trade surplus with Brazil. According to the US Office of the Trade Representative, America recorded a trade surplus of $7.4 billion in goods with Brazil in 2024.

Alckmin also warned that new tariffs could backfire on the US economy, using the steel industry as an example. He pointed out that Brazil is the third-largest buyer of coal used in American steelmaking. The country produces a semi-finished product and exports it to the US for final processing, meaning added tariffs would only increase US supply chain costs.

Trump’s letter appears to reaffirm his earlier threat of imposing a 10% blanket tariff on all BRICS nations, a bloc in which Brazil is a founding member. The former president later accused BRICS of fostering “anti-American policies.”

Adding to the diplomatic strain, US Secretary Marco Rubio said in May that Washington was considering sanctions against Brazilian Supreme Court Justice Alexandre de Moraes. The judge has been at the center of political controversy after ordering the suspension of social media accounts accused of spreading misinformation.

Earlier that day, Brazil’s foreign ministry summoned the acting US ambassador in response to an embassy statement that supported former President Jair Bolsonaro. Brazil’s Supreme Court has not commented on the matter.

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