And never mind that former President Donald Trump wanted to put a 50% tariff on everything Brazil produced. This decision is sure to further inflame relations between the United States and South America’s largest nation. He laid out his plans in a letter he published on social media platforms. This announcement is the opening salvo in a series of missives he fired off to different trade partners this week.
Trump’s most recent tariff letter vehemently blames Brazil for firing “salvos” or “broadside attacks” on U.S. tech firms. He in turn denounces the current prosecution of former far-right president Jair Bolsonaro as a “witch hunt.” Bolsonaro is still deep in legal hot water as he has been indicted for his efforts to overturn the results of 2022’s presidential election. The former president’s trial has received worldwide interest, especially as Trump has openly backed him.
The newly proposed tariffs represent a radical departure from the 10% rate already announced by the White House back in August of this year. This latest move comes on the heels of a rare public spat between Trump and Brazilian President Luiz Inácio Lula da Silva. We were considering Bolsonaro’s legal troubles just days ago. Lula reiterated in the strongest terms that Brazil will not put up with any interference by outside actors. He reiterated, “Nobody is above the law.”
Trump’s letters to other countries, including Japan, South Korea, and Sri Lanka, outlined similar tariff increases set to take effect on August 1. Together, these measures seek to restore some of the grand design he laid out back in April. That plan was placed on hold due to market backlash. The message to Brazil, as this excerpt shows, is uniquely strident.
The economic ramifications of Trump’s proposed tariffs would be deep and wide, hitting several sectors that heavily depend on Brazilian imports. The former president doesn’t hesitate to lay out negative consequences. He promises to be tough on countries that he thinks attack American interests.
Now, even as the conflict whirls around them, both sides seem deeply rooted in their opposing camps. Indeed, Trump’s administration appears set to push a very aggressive trade agenda. In any case, Lula’s administration is committed to defending sovereignty and legal order within Brazil.