President Donald Trump announced on Wednesday that the United States will impose a 50% tariff on imports from Brazil starting August 1. This significant increase from the previously imposed 10% tariff is partly a reaction to the ongoing legal proceedings against former Brazilian President Jair Bolsonaro.
In a correspondence addressed to Brazil’s current president, Luiz Inacio Lula da Silva, Trump expressed that this new tariff reflects the “very unfair trade relationship” existing between the two nations. This letter is part of a series recently sent by Trump to various world leaders, announcing steep new tariffs on imports to the U.S.
What makes Trump’s letter to Lula particularly notable is its explicit intention to punish Brazil for its domestic political and legal actions, a departure from his approach with other countries.
Following Trump’s announcement, Brazil’s currency, the real, experienced a decline of over 2% against the U.S. dollar.
Trump has previously criticized Brazil regarding its treatment of Bolsonaro, who is currently standing trial related to allegations of orchestrating a coup to reverse his electoral defeat in 2022.
In the letter, which Trump later shared on Truth Social, he described the situation as “an international disgrace” and referred to the trial of Bolsonaro as a “Witch Hunt,” mirroring the terminology he himself has used in response to various criminal investigations he has faced.
Trump further accused Brazil of “insidious attacks on Free Elections and the fundamental Free Speech Rights of Americans,” seemingly referencing a recent ruling by the Brazilian Supreme Court that could hold social media platforms accountable for user-generated content.
He also attributed what he described as “unsustainable Trade Deficits against the United States” to Brazil’s trade policies, claiming they pose significant threats to the U.S. economy and national security. However, it’s noteworthy that the U.S. currently holds a goods trade surplus with Brazil, amounting to $7.4 billion in 2024, according to the Office of the U.S. Trade Representative.
Additionally, Trump indicated that the U.S. is initiating an investigation into Brazil’s trade practices, which he alleges are unfair and detrimental to American businesses.
In his letter, he asserted that this investigation stems from “Brazil’s continued attacks on the Digital Trade activities of American Companies.”
“Please understand that the 50% number is far less than what is needed to have the Level Playing Field we must have with your Country,” Trump stated. “And it is necessary to rectify the grave injustices of the current regime.”
Elements of Trump’s letter to Lula echo the language used in the 21 tariff letters sent to other world leaders since early this week.
These recent letters clarify that the new blanket tariffs are distinct from existing “sectoral” duties, which affect specific product categories like steel, aluminum, and automobiles.
According to the communications, if any of the countries decide to increase their import taxes on American goods “for any reason,” the U.S. will retaliate with equivalent tariff increases.
Moreover, the letters mention that the U.S. will “perhaps consider an adjustment” if the countries eliminate their tariff and non-tariff trade barriers.
“These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” Trump reiterated throughout the letters. “You will never be disappointed with The United States of America.”
These recipients include both influential U.S. trade partners like Japan and South Korea and smaller economies such as Moldova and Brunei.
The new tariff rates for these 21 nations will range from 20% to 40%, taking effect on August 1. Trump has asserted that “no extensions will be granted” for these new measures.
