The U.S. government under President Donald Trump formally implemented a 50% tariff on imports from Brazil. This move, framed as part of support for political ally Jair Bolsonaro, differed from the tariff rates applied to other nations. According to Trump, the higher rate targeted countries aligned with BRICS-related policies. The decision, rooted in broader international economic strategy, drew criticism from Brazilian President Luiz Inácio Lula da Silva.
The case advancing in the justice
The Brazilian Supreme Court advanced in recent months in the case that accuses Bolsonaro of being one of those responsible for the coup attempt after the elections of 2022, when Lula was elected as the new president of that country. On January 8, 2023, attempts to forcibly seize power in Brazil were recorded, with the help and contacts of the military. After this, Trump decided to respond to defend the businessman who was an ally during his first administration.
The questioning of the validity of the elections escalated to a physical scenario, where Bolsonaro’s followers tried to take power after Lula’s inauguration. From the opposition in Brazil, they allege that this judicial process is a “political persecution against him and his party”. The president of the United States, in a context of sending letters to the delegations that will suffer tariffs on their products, made it clear that Brazil will receive a large percentage on its products due to the U.S. imposition.
Trump Announcement
Dated for August 1, the start of the 50% tariffs on Brazilian products was announced through a letter sent to the Brazilian government, provoking great anger in Lula and his cabinet. The announcement, according to Trump, is due to the ways of handling justice by the current president, attributing that the movement of the Court is largely to blame for the decisions on the percentage of levies applied on Wednesday afternoon.
In his social network, Truth, as usual, Donald Trump left more details of the decision, evidencing that “the prosecution of former President Bolsonaro is an international disgrace”. In addition, they used the term “witch hunt”, which had already been coined in the days prior to the official announcement of the percentage that was finally applied to Brazil. The U.S. Embassy in Brasilia also adhered to Trump’s message, reproaching the handling of Justice.
The news attracted the attention of Lula’s closest supporters, since they did not expect that a purely political issue would affect the determination of tariffs. The foretaste of what could be a surprise determination for tariffs imposed on other countries came on Monday, when Trump had posted: “Brazil is doing something terrible with the treatment of former President Jair Bolsonaro. He is guilty of nothing, except for having fought for the people”.
In the statement released Wednesday night, he also added that the decision is a fact that “attacks freedom of expression”. For his part, Lula responded on the social network X, a few minutes after the measure was announced. “Defending democracy in Brazil is a matter of Brazilians. We are a sovereign country. We do not accept interference or tutelage from anyone,” wrote Lula da Silva.
Further impacts
Undoubtedly, this announcement of the application of a 50% tax on any Brazilian product entering the United States will make noise in the Brazilian market. In the minutes after the letter was made official, the real began to fall a little more than 2% against the US dollar.
Bolsonaro, for his part, did not pronounce himself so far, but he has a solid defense from Donald Trump’s administration and his aggressive policy of imposing tariffs. Since the publication of the “Tariff Table”, with several changes on the way, several countries have raised their alarms.