Trump announces 50% tariff on Brazil, citing Bolsonaro trial

President Donald Trump announced on Wednesday a 50% tariff on all Brazilian goods, marking a sharp escalation in a diplomatic feud over Brazil’s prosecution of former president Jair Bolsonaro over his alleged role in a plot to retain power by military force following his 2022 electoral loss.

The tariff, effective August 1, opens a new theater in Trump’s ongoing trade war, bringing into the fray Latin America’s largest economy, which had until now remained largely unscathed by the trade measures. If carried out, the tariff would severely affect the Brazilian economy, whose second-largest trading partner is the United States, behind China. In 2024, Brazil sold $40 billion (R711bn) worth of goods - primarily oil, coffee and steel - to the United States.

“The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace,” Trump wrote Wednesday in a letter to Brazilian President Luiz Inácio Lula da Silva. “This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!”

The Brazilian president rebutted all of Trump’s claims on Wednesday and threatened to retaliate against any new tariffs.

“Any measure that unilaterally elevates tariffs will be responded to by the Brazilian law of economic reciprocity,” Lula said Wednesday evening. “Sovereignty, respect and the intransigent defense of the Brazilian people’s interests are the values that guide our relationship with the world.”

Trump’s announcement follows days of escalating tensions between the Western Hemisphere’s two most populous countries over Bolsonaro’s prosecution. The former president, who is facing decades in prison on allegations that he led a plot to subvert Brazilian democracy and assassinate rivals, was questioned last month by the Brazilian Supreme Court. He is expected to go on trial later this year.

On Monday, Trump wrote a lengthy social media post in which he both defended and identified with Bolsonaro. He said Bolsonaro “is not guilty of anything, except having fought for THE PEOPLE.”

In response, Lula said Brazil wouldn’t back down. “We don’t accept interference or tutelage regardless of who someone is,” he said. “We have solid and independent institutions. No one is above the law.”

In his missive Wednesday, Trump also accused Brazil of unfair trade practices that he said had resulted in “grave injustices” and an unfair trade balance.

“Our relationship has been, unfortunately, far from Reciprocal,” he said.

The accusation surprised many in Brazil, which has maintained a trade deficit with the US every year since 2008. Last year, the US trade surplus with Brazil reached $6.8bn.

Aides close to Lula, speaking on the condition of anonymity to candidly discuss private discussions, said Wednesday that the Brazilian government had been planning for some type of tariff - but not 50%.

“They have a surplus with us,” one Lula aide said. “Brazil isn’t a problem for the United States.”

Trump also accused the Brazilian officials of unfairly targeting US social media companies with orders to remove accounts that authorities here have accused of violating Brazilian law and failing to block users accused of spreading misinformation. Earlier this year, Trump’s media company sued Brazilian Supreme Court Justice Alexandre de Moraes in Florida federal court, accusing him of censorship and, recently, asking for him to be held financially responsible for damages resulting from his orders.

But the issue that seems to have triggered Trump’s reaction was the looming trial of Bolsonaro, a hard-line conservative who used Trump as a political model and worked for years to cultivate relations with him. For months, as his legal situation grew more complicated, Bolsonaro waited for Trump to make some sort of proclamation in his defense.

When The Washington Post visited the former president in April, he set out a book that Trump had sent and autographed for him, gleefully showing off photos of himself beside the president. Adding that he was nothing compared with Trump, Bolsonaro said he was waiting for his political idol to say something. His son Eduardohad traveled to the US to try to coax some type of reaction out of the Americas, but seemingly to no avail.

Then came Trump’s message on Monday. Bolsonaro quickly touted it on social medial in a note of gushing gratitude.

“Thank you, illustrious President and friend. Your excellency went through something similar,” he wrote. “Thank you for existing and giving us an example of faith and resilience.”

By early Wednesday evening, Trump’s announcement was sending a jolt through the country’s political ecosystem. Lula, who has been dealing with dismal polling, is expected to seize on the issue of American imperialism as a way to galvanize support heading into next year’s presidential election.

“Politically, this was a present to the Brazilian government, in a moment when the administration was on the ropes,” one Lula official in the Foreign Ministry said, speaking on the condition of anonymity to candidly discuss his assessment. “This could be a key moment, the turn in the campaign next year.”

Bolsonaro allies, however, had a different interpretation. They said Lula and Brazil’s Supreme Court were to blame for Trump’s tariff.

Ciro Nogueira, Bolsonaro’s former chief of staff, accused Lula in a statement to The Post of dividing both Brazil and the “American continent.”

“The Brazilian people will suffer the consequences of this recklessness,” he said.

WASHINGTON POST