Thu, 10 Jul 2025

Thu, 10 Jul 2025 Brazil vows to match US tariffs after Trump threatens 50% levy

Trump's threat is over what he calls the "mistreatment" of his ally, ex-President Jair Bolsonaro.
Brazilian President Luiz Inácio Lula da Silva has vowed to match any tariffs imposed by the US on Brazilian goods, in response to a threat from his US counterpart Donald Trump. Trump had threatened a 50% import tax on Brazilian goods starting August 1, citing Brazil's treatment of former President Jair Bolsonaro as a reason. Bolsonaro is currently on trial for allegedly attempting to stage a coup against Lula after being defeated in the 2022 election. In a letter, Trump referred to Bolsonaro as "a highly respected leader throughout the world" and called on Brazil to end what he termed as a "witch hunt". However, Lula shot back by emphasizing that Brazil is a sovereign country with independent institutions and will not accept any tutelage. He also announced that any unilateral tariff increases from the US would be met with reciprocal tariffs imposed on US goods. The US is Brazil's second-largest trade partner after China, and the proposed 50% tariff hike would significantly impact Brazil's economy. However, Lula challenged Trump's assertion that the US has a trade deficit with Brazil, pointing out that data suggests the opposite - the US had a $7.4bn trade surplus with Brazil in 2024. Trump also threatened higher tariffs on several other countries, including Japan, South Korea, and Sri Lanka, citing alleged trade deficits and "secret and unlawful censorship orders" imposed by those countries on US social media platforms. Lula responded to this accusation as well, justifying the Brazilian court rulings by saying that they aim to protect society from hateful content. Brazilian analysts believe that Trump's overly political tone in his letter could ultimately benefit Lula, who has gained popularity points for standing up to the US president.
  >>