Trump Threatens a 50% Tariff on Brazilian Goods in the Trade, Tech, and Bolsonaro Scandal
Trump has threatened to impose a 50% tariff on Brazil, claiming that Lula had censored Americans and repressed Bolsonaro.
A 50% duty on Brazilian-made goods has been declared by US President Donald Trump, intensifying tensions with the South American nation over limits on digital trade, the prosecution of former President Jair Bolsonaro, and what Trump has described as attacks on US tech businesses.
In a social media post announcing the move, he accused Brazil of “attacking” US tech businesses and of pursuing Bolsonaro, who is presently being prosecuted for his suspected involvement in an effort to rig the 2022 election, in a “witch hunt.”
“No one is above the law,” Brazilian President Luiz Inácio Lula da Silva wrote in a social media post in response to the letter, warning that any hike in tariffs on Brazil will be greeted with a reciprocal response.
Trump’s statement is the most acerbic yet in his ongoing trade offensive, which has seen tariff letters delivered to over 20 countries. It goes far beyond the 10% duty that the White House had previously declared.
The 50% tariff rate was “necessary… to rectify the grave injustices of the current regime,” according to Trump’s letter specifically addressing Brazil. A 301 probe into Brazil’s digital trade practices would be initiated by the US Trade Representative, he added.
The Brazilian government has been accused by Trump of censoring “US Social Media platforms” and of launching “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans.” He mentioned his own business, Trump Media, which operates Truth Social, as one of the impacted parties.
“I know a lot about this, and it’s nothing more or less than an attack on a political opponent,” he continued. In response, Bolsonaro expressed gratitude to the US president for his backing.
Elon Musk’s X, which was temporarily banned for failing to remove false information about Brazil’s 2022 election, and Trump’s own platform are among the US companies involved in legal disputes with Brazil after the country recently ruled that social media companies can be held accountable for the content on their platforms.
Earlier this week, Lula said in response to Trump’s more general criticisms: “He needs to know that the world has changed.” We do not desire an emperor.
With the tariff declaration, Trump also showed his support for Bolsonaro. Trump declared that the former Brazilian president’s trial is “an international disgrace” and added, “I respected him greatly.”
The two had a close friendship while in power, meeting in the White House in 2019 and frequently comparing their populist approaches. Neither leader publicly acknowledged defeat following their separate electoral setbacks.
After Lula won the election, thousands of Bolsonaro’s followers stormed important government facilities in Brasília in January 2023, allegedly staging a coup. Bolsonaro is currently on trial for this. Having been in the United States at the time, Bolsonaro has denied any involvement in the violence.
Trump also criticized the Rio de Janeiro BRICS summit, accusing the organization of being “anti-American” and declaring that those nations will be subject to an extra 10% tariff.
The 50% duty on Brazilian commodities, according to his letter, will go into force on August 1st. Similar measures will also be implemented for imports of copper and other goods from various trading partners. When the tariff proceedings were first suggested in April, they were put on hold because of unfavorable market reactions.
Nevertheless, Trump’s most recent action seems to indicate a more assertive posture. “To address the serious injustices of the current regime, this tariff is required,” he reaffirmed.
Although the United States and Brazil presently have a trade surplus, analysts caution that trade frictions and punitive actions might have wider economic and diplomatic repercussions.
