Donald Trump has threatened to hit Brazil with tariffs of fifty per cent and accused it of attacking free speech, in important escalation of tensions between the US and Latin America’s largest economic system.
In a letter posted to Reality Social on Wednesday, Trump lashed out on the authorities of Luiz Inácio Lula da Silva over the remedy of Brazil’s former rightwing president Jair Bolsonaro.
Trump stated Bolsonaro, who’s on trial over an alleged coup plot, was a “Highly Respected Leader throughout the world during his Term”, branding the case a “Witch Hunt that should end IMMEDIATELY!”
He added that the tariff, to be efficient from August 1, could be utilized “in part” due to Brazil’s “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans”.
The US president additionally accused Brazil’s Supreme Courtroom of issuing “hundreds of SECRET and UNLAWFUL Censorship Orders” in opposition to US social media platforms, threatening them with hundreds of thousands of {dollars} in fines and “eviction” from the nation.
Brazil’s foreign money dropped 2.3 per cent to R$5.58 in opposition to the US greenback in afternoon buying and selling in New York. Futures within the Bovespa share index prolonged their fall after Trump’s announcement, leaving them down 2.3 per cent by the night in São Paulo.
Lula signalled his nation was prepared to reply utilizing a legislation that permits Brasília to retaliate in opposition to commerce obstacles imposed on its exports.
“Any unilateral tariff increase will be met under the Brazilian Economic Reciprocity Act,” the Brazilian president stated.
“Brazil is a sovereign country with independent institutions that will not accept anyone’s control,” he added.
The letter to Brazil was the eighth Trump posted on Wednesday and comes as a part of a broader barrage in opposition to 22 international locations in current days as he ratchets up strain on the US’s buying and selling companions to strike offers or face levies.
Earlier on Wednesday, Trump imposed tariffs of between 25 per cent and 30 per cent on Algeria, Brunei, Iraq, Libya, Moldova, the Philippines and Sri Lanka. The letters adopted threats of 25 per cent tariffs on Japan and South Korea, amongst others, on Monday.
Whereas different international locations obtained virtually an identical letters that referred to the “strength and commitment” of the recipient’s buying and selling relationship with the US, the letter to Latin America’s most populous nation was markedly completely different in tone.
The 50 per cent tariff threatened can be considerably greater than the ten per cent levy that was imposed on Brazil as a part of the sweeping April 2 “reciprocal” duties.
After Trump earlier stated he was going to announce a brand new import tax on Brazil, however earlier than he unveiled the 50 per cent charge, Brazil’s vice-president and commerce minister Geraldo Alckmin described the brand new tariff as “unfair” and stated his nation didn’t pose any drawback to the US.
“I see no reason to increase tariffs on Brazil,” he instructed reporters in Brasília. “The US does have a trade deficit, but it has a surplus with Brazil.”
The US registered a $7.4bn items commerce surplus with the nation in 2024, in accordance with the Workplace of the US Commerce Consultant.
Alckmin stated the brand new US tariff on Brazilian imports would hurt the American economic system and cited the instance of metal.
“We are the third-largest buyer of American steelmaking coal,” Alckmin stated. “We make the semi-finished product and sell it to the US, which finishes it. So, by imposing taxes, they increase the cost of their own supply chain.”
Brasília known as for an emergency cupboard assembly, in accordance with native media stories.
Trump’s blast in opposition to Lula’s leftwing administration has introduced the 2 largest democracies within the Americas nearer to diplomatic disaster.
The US president’s intervention in favour of Bolsonaro will cheer Brazil’s far-right motion, which claims a judicial crackdown in opposition to digital misinformation unfairly targets conservatives.
Prosecutors have charged Bolsonaro with planning an abortive putsch that allegedly aimed to maintain him in energy after dropping a re-election in 2022 to Lula. The hard-right populist denies any wrongdoing.
Lula stated the authorized proceedings involving Bolsonaro had been “the sole jurisdiction of the Brazilian courts” and “not subject to any type of interference”.
US secretary of state Marco Rubio in Could stated Washington was contemplating sanctions in opposition to one in every of Brazil’s supreme courtroom justices, Alexandre de Moraes, who has ordered social media accounts deemed to be spreading pretend information to be taken down.
The decide clashed with Elon Musk final yr over the billionaire’s X platform and briefly banned the web site in Brazil.
Trump’s letter to Brazil follows his risk of an additional 10 per cent tariff in opposition to members of the Brics bloc, of which the South American nation is a founding member. The Republican on Sunday evening accused the group of growing nations of “anti-American policies”.
On the annual Brics summit held in Rio de Janeiro this week, Lula hit again on the warning and urged alternate options to the US greenback in commerce — a proposal that Trump has already taken purpose at.
Brazil’s overseas ministry summoned the performing US ambassador earlier within the day following an embassy assertion voicing help for Bolsonaro.
The nation’s Supreme Courtroom declined to remark.