On March 25, former U.S. President Donald Trump declared a 100 percent increase in tariffs on Brazil. He has ongoing trade disputes and concerns about Brazil’s impact on American business cited as reasons. On July 9, 2025, Trump shared a public letter addressed to Brazil’s current president, Luiz Inacio Lula da Silva, detailing his grievances regarding Brazil’s trade practices. In January, 2019, Trump initiated an investigation into what he termed Brazilian “unfair trade practices.” This step is particularly important to address the growing problems in the digital trade industry.
In the letter, Trump emphasized Brazil’s “continued attacks on the Digital Trade activities of American Companies,” which he claims have contributed to an “unsustainable Trade Deficits against the United States.” As he put it, these deficits are a danger to the U.S. economy and national security. In 2024, the U.S. and Brazil had a substantial goods trade surplus of $7.4 billion. Trump claims Brazil’s policies have tilted the trade balance.
These historic new tariffs are apparently the former president’s idea, announced with great fanfare. They will skyrocket from the current 10% level set in April to an incredible 50%. In fact, during the campaign, Trump described the current trade playing field as “very unfair,” saying that the current state of affairs must be changed to serve American interests. He pointed to the current prosecution of former Brazilian president Jair Bolsonaro. This context proved to be an essential factor in his decision-making process.
Trump’s actions come at a time of heightened scrutiny of global trade relationships, reflecting growing tensions between the U.S. and various nations regarding trade practices. His administration’s implementation of tariffs and use of Section 232/301 investigations are actions taken to recalibrate what he views as one-sided trade agreements.
“unsustainable Trade Deficits against the United States” – Donald Trump
“Brazil’s continued attacks on the Digital Trade activities of American Companies” – Donald Trump