Trump imposes 50% tax on Brazil, sends letters to 7 other countries
On July 9, President Donald Trump announced that the United States would impose a 50% tariff on imports from Brazil starting August 1, partly in retaliation for the ongoing prosecution of the country's former President, Jair Bolsonaro.
In a letter, Mr. Trump said the new tariffs were also a response to the “very unfair trade relationship” between the two countries. The new tariffs are a sharp increase from the 10% rate the U.S. imposed on Brazilian goods in early April.
The letter to Brazil's incumbent President Luiz Inacio Lula da Silva follows about two dozen other letters that Trump has sent to world leaders in recent weeks announcing reciprocal tariffs.
The value of Brazil's real fell more than 2% against the US dollar following Mr. Trump's announcement, according to CNBC .
Mr Trump has previously criticized Brazil for its treatment of Mr Bolsonaro, a close ally of the US president, who is on trial for his role in an alleged coup to overturn his own defeat in the 2022 election.
In a letter posted on the social network Truth Social, Mr. Trump called the current situation “an international disgrace.” He criticized Mr. Bolsonaro’s trial as a “witch hunt.”
Mr Trump also criticized Brazil's "vicious attacks on free elections and Americans' fundamental right to free speech".
According to CNBC , this criticism seems to refer to a recent ruling by Brazil's Supreme Court, which could hold social media platforms liable for user content.
In addition, Mr. Trump also declared that Brazil's trade policies have caused "an unsustainable trade deficit for the United States", threatening the US economy and national security.
However, according to the Office of the United States Trade Representative, the world's number one superpower recorded a trade surplus in goods with Brazil, reaching $7.4 billion by 2024.
In the letter, Mr. Trump revealed that the US is also conducting an investigation into Brazil's potential unfair trade practices.
The White House owner said the investigation was conducted based on “Brazil's continued attacks on the digital commerce activities of American businesses”.
“Please understand that this 50% figure is far below what is needed for us to level the playing field with your country,” Trump wrote. “This figure is needed to correct the grave injustices of the current administration.”
Send more letters to 7 other countries
Parts of the letter to President Lula da Silva match the content of 21 other tariff letters that President Trump has sent to other world leaders since July 7.
On July 9 alone, Mr. Trump sent additional letters to seven countries: the Philippines, Brunei, Moldova, Algeria, Iraq, Libya and Sri Lanka.
All of those letters said the new reciprocal tariffs were separate from “sector-specific” tariffs on specific imports, such as steel, aluminum and autos.
All also warned in advance that if countries decide to increase their own import tariffs on US goods “for any reason,” the US will raise its tariff rates accordingly.
And all noted that the US “may consider adjusting” if countries remove their tariff and non-tariff trade barriers.
“These tariffs may be adjusted, increased or decreased, depending on our relationship with your country. You will never be disappointed with America,” the letters said.
Tariffs on the 21 countries range from 20% to 40%. All will take effect on August 1, and Mr. Trump has stressed that “there will be no extension” of the new deadline.
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