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Home»Business»Trump threatens Brazil with 50% tariffs over ‘witch-hunt’ trial
Business

Trump threatens Brazil with 50% tariffs over ‘witch-hunt’ trial

Press RoomBy Press RoomJuly 10, 2025No Comments3 Mins Read
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President Lula da Silva has pushed back, vowing reciprocal action and defending the country’s court system

US President Donald Trump has threatened Brazil with a crippling 50% tariff, citing the treatment of the South American nation’s former leader, Jair Bolsonaro, who is on trial for allegedly attempting to overturn his defeat in the country’s 2022 election.

Brazil’s prosecutor general has charged Bolsonaro with attempting a coup to stay in power after his 2022 loss. The charges include an alleged plot to kill his successor, Luiz Inacio Lula da Silva.

In a letter addressed to Lula and published on Wednesday on the Truth Social platform, Trump demanded an end to what he called a “witch hunt” against the “highly respected” Bolsonaro.

“Starting from August 1, 2025, we will charge Brazil a Tariff of 50% on any and all Brazilian products sent into the United States, separate from all Sectoral Tariffs,” Trump wrote, warning of further hikes if Brazil retaliates.

Lula pushed back on X, writing on Thursday that Brazil is “a sovereign country with independent institutions and will not accept any tutelage.”

He emphasized that the coup investigation is strictly a matter for the judiciary and not subject to outside interference. Lula added that “any unilateral tariff increases” would be met with reciprocal tariffs on US goods.

At 50%, Brazil would face the highest US import tariff globally, according to rates that the Trump administration has confirmed so far. Imports from Brazil to the US have faced a minimum 10% tariff since Trump announced “reciprocal” global tariffs in April – the baseline rate he has applied to most goods from most countries during the 90-day negotiation period, which has now been extended to August 1.

Responding to Trump’s claim that Brazilian policies caused “unsustainable trade deficits against the US,” Lula called the accusation “inaccurate.” He cited US government data showing a $410 billion surplus in goods and services trade with Brazil over the past 15 years.

The US is Brazil’s second-largest trade partner after China. According to US Census Bureau data, American exports to Brazil last year included aircraft and spacecraft, fuels, nuclear reactors, and electrical equipment.

READ MORE:
Trump threatens BRICS with 10% duties

Trump’s letter made no mention of the additional 10% tariff he threatened this week against BRICS members, accusing them of trying to “destroy the dollar as the global standard.”

Brazil is a founding member of BRICS, formed in 2006 with Russia, India, and China. The economic bloc has since expanded to include South Africa, Egypt, Iran, Ethiopia, the United Arab Emirates, and Indonesia. Its leaders have repeatedly stated they have no interest in weakening the dollar, arguing it is only undermined by political misuse.

Read the full article here

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