Trump threatens 50% tariff on Brazilian goods amid rising tensions with Lula


Daijiworld Media Network - Washington

Washington, Jul 10: In a bold escalation of trade tensions, former US President Donald Trump has declared plans to impose a 50% tariff on goods imported from Brazil, targeting the South American nation over alleged political and digital policy grievances. The announcement came via a public letter posted on social media, part of a broader wave of tariff declarations aimed at multiple global trade partners.

In the letter, Trump accused the Brazilian government of “attacks” on US technology companies and criticized its handling of former President Jair Bolsonaro’s ongoing legal troubles, describing them as a “witch hunt.” Bolsonaro is currently facing prosecution for allegedly plotting to overturn the 2022 Brazilian presidential election — a claim he denies.

Trump’s threat represents a significant hike from the earlier 10% tariff floated by the White House and appears to specifically target Brazil’s digital policies. He also announced his intention to direct the US Trade Representative to initiate a Section 301 investigation into Brazil’s digital trade practices — a legal move that could pave the way for more long-term punitive measures.

The Brazilian government, under President Luiz Inácio Lula da Silva, responded swiftly. In a social media statement, Lula condemned the tariff threat and warned that Brazil would reciprocate if the new duties were imposed. He also rebuked Trump’s comments regarding Bolsonaro’s trial, stating firmly: “No one is above the law” and that Brazil would “not accept interference” in its judicial system.

The clash between the two leaders intensified earlier this week when Trump spoke positively about Bolsonaro, calling him a man he "respected greatly" and labeling his prosecution an "international disgrace." Lula, in contrast, dismissed Trump’s criticisms and emphasized global changes in leadership and diplomacy, saying: "We don't want an emperor."

The spat comes at a delicate time. Trump has recently issued 22 tariff letters to various countries — including Japan, South Korea, and Sri Lanka — with new duties set to take effect from August 1. While most of these letters revive earlier proposals shelved due to market backlash in April, the message to Brazil stands out for its sharper political tone and personal undertones.

The US has historically enjoyed a trade surplus with Brazil, selling more to the country than it imports — a dynamic that could intensify the impact of any reciprocal action by Brazil.

Trump also lashed out at Brazil’s Supreme Court rulings, which held social media platforms accountable for misinformation during the 2022 elections. His own social media company, Trump Media, has reportedly clashed with Brazilian court orders aimed at curbing election-related falsehoods. He further criticized Brazil’s temporary suspension of Elon Musk’s X (formerly Twitter) over similar concerns, accusing the Lula administration of infringing on free speech rights of Americans.

The feud is also unfolding against the backdrop of the recent BRICS summit in Rio de Janeiro, which Trump labeled as “anti-American.” He warned that BRICS nations — which include Brazil, Russia, India, China, and South Africa — would be subject to an additional 10% tariff under his policy.

The Trump-Bolsonaro connection adds another layer to the conflict. The two leaders shared a close alliance during their respective terms and maintained similar stances on electoral defeat and governance. Bolsonaro has echoed Trump’s rhetoric, thanking him for support and suggesting that both are being unfairly targeted by judicial systems.

As the trade and diplomatic standoff deepens, global observers are watching closely for the impact on US-Brazil relations — and whether this marks the beginning of a broader shift in how digital sovereignty and political alliances influence economic policy.

  

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Title: Trump threatens 50% tariff on Brazilian goods amid rising tensions with Lula



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