U.S. President Donald Trump announced a 50% tariff on all imports from Brazil, effective August 1, 2025.
The decision, outlined in a letter to Brazilian President Luiz Inácio Lula da Silva, cites two primary reasons.
One of the reasons os the prosecution of former Brazilian President Jair Bolsonaro, which Trump calls a “witch hunt” and an “international disgrace”.
READ ALSO: Brazil’s President Lula announces readiness to negotiate a new trade deal with the US.
He also claims there is an unfair trade relationship due to Brazil’s alleged trade barriers and attacks on free elections and American free speech rights, particularly through censorship orders on U.S. social media platforms.
However, U.S. trade data shows a $7.4 billion goods trade surplus with Brazil in 2024, contradicting Trump’s claim of a trade deficit.
Brazilian President Lula responded, rejecting Trump’s demands to halt Bolsonaro’s trial, emphasizing Brazil’s sovereignty and independent judiciary.
Lula stated that Brazil would reciprocate with proportional countermeasures under its Economic Reciprocity Law, potentially targeting U.S. exports like aircraft, fuels, and machinery.
The Brazilian real fell over 2% against the dollar, and companies like Embraer and Petrobras faced stock market setbacks.
READ ALSO: Video: Brazilian President Lula slams President Trump for threatening BRICS
The tariff, separate from sectoral tariffs like those on steel and aluminum, could impact $42 billion in U.S. imports from Brazil, including coffee, steel, and orange juice, risking higher U.S. consumer prices and economic fallout for both nations.
Trump also ordered a Section 301 investigation into Brazil’s digital trade practices, which could lead to further tariffs.