U.S. President Donald Trump has threatened to impose a 50% tariff on Brazilian exports, accusing Brazil of undermining free speech and attacking democratic values. The warning, delivered via Truth Social, comes amid the ongoing trial of former Brazilian president Jair Bolsonaro, which Trump labeled a politically motivated “witch hunt.”
He strongly defended Bolsonaro, calling him a “Highly Respected Leader throughout the world during his Term,” and urged an immediate end to his trial over an alleged coup plot.
The proposed tariff hike, set to take effect August 1, would mark a sharp increase from the 10% levy imposed in April, signaling rising tensions between the United States and Latin America’s largest economy. Trump claims the action is partly in response to “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,” allegedly originating from Brazil.
Trump accused Brazil’s Supreme Court of issuing “hundreds of SECRET and UNLAWFUL Censorship Orders” targeting US social media platforms, escalating the dispute beyond trade and into the realm of digital rights and democratic freedoms.
Financial markets reacted swiftly to the announcement. Brazil’s currency, the real, tumbled 2.3% to R$5.58 against the dollar, while Bovespa index futures declined 1.4%, reflecting investor concern over a potential trade war and its implications for Brazilian exports.
In response, Brazilian President Luiz Inácio Lula da Silva signaled readiness to retaliate, invoking the Brazilian Economic Reciprocity Act to counter any unilateral US tariffs. “Brazil is a sovereign country with independent institutions that will not accept anyone’s control,” Lula stated, reinforcing his administration’s firm stance against external pressure.
Trade Minister Geraldo Alckmin also criticized the proposed tariffs, calling them “unfair” and insisting that Brazil “does not pose a problem for the US.” He pointed to the $7.4 billion US goods trade surplus with Brazil in 2024, as reported by the Office of the US Trade Representative, to challenge the rationale behind the move.
This announcement was one of eight letters Trump posted on Wednesday, part of a broader campaign targeting 22 countries, including new tariffs of 25% to 30% on Algeria, Brunei, Iraq, Libya, Moldova, the Philippines, and Sri Lanka. Trump also confirmed that his 50% copper tariff would also go into effect on August 1.
