Trump's Bold Move: A 50% Tariff Surge on Brazilian Imports

Brazil was initially facing a minimum tariff of 10% under the “reciprocal” tariffs introduced by Trump back in April. (Dado Galdieri/Bloomberg)

A recent publication by Bloomberg reveals that on July 9, Donald Trump announced a staggering increase to a 50% tariff on Brazilian goods. This move came after he expressed strong disapproval of President Luiz Inacio Lula da Silva’s policies both at home and abroad.

In a letter shared via his social media platform, Trump justified this drastic measure by citing Brazil’s alleged attacks on free elections and the basic rights of Americans regarding free speech.

The Brazilian real took a hit, dropping nearly 2.9% against the U.S. dollar right after Trump’s announcement.Additionally,the iShares MSCI Brazil ETF—worth $5.35 billion and tracking Brazilian stocks—fell by about 1.8% during postmarket trading.

this new tariff marks an escalation from the previously planned minimum levy of just 10%. It’s noteworthy that this is one of over twenty notices issued recently by Trump; it stands out as it targets Brazil specifically for an increase rather than revising existing rates for other nations.

During an earlier White House event, Trump lamented that Brazil had not been favorable towards the U.S., asserting his decision was grounded in “very substantial facts” along with historical context.

Citing data from Bloomberg again, this announcement followed closely behind trump’s threats to impose further tariffs on BRICS nations due to their perceived anti-American stance during their leaders’ summit held in Rio de Janeiro.

The leaders within BRICS criticized trade-distorting tariffs and military actions against iran in their official statements—a clear divergence from Trump’s approach while avoiding direct confrontations with him.

A few days prior to these events, Trump also defended Jair Bolsonaro amid accusations that Brazil was politically targeting its former president who faces serious charges related to an alleged coup attempt.

The letter reiterated Trump’s demand for authorities to dismiss charges against Bolsonaro regarding this supposed coup attempt: “This Trial should not be taking place. It is a Witch hunt that should end INSTANTLY!” he declared emphatically.

Lula responded sharply at the conclusion of the BRICS summit on July 7th; he urged Trump to focus on American issues rather of meddling in Brazilian matters and labeled his threats as irresponsible behavior stemming from social media rants. he also called upon global leaders to explore alternatives reducing reliance on the dollar within international trade frameworks.

Prior to these developments, Vice President Geraldo Alckmin expressed skepticism about any need for increased tariffs since America enjoys a trade surplus with Brazil: “Any such measure would be unjust and could actually harm U.S economic interests,” said Alckmin who also holds responsibilities as Minister of Industry and Trade.
He emphasized that Brazil would maintain its negotiating stance concerning steel tariffs among other levies without altering its tone amidst ongoing discussions.

This week saw trump keeping his original tariff rate intact for South Africa—a fellow member within BRICS which includes Russia, India, China alongside newer entrants like Ethiopia and Egypt among others.