President Trump said Wednesday he would impose a 50% tariff on goods from Brazil next month, one of the steepest rates for any U.S. trading partner, citing the criminal prosecution of former Brazilian President Jair Bolsonaro, which Mr. Trump called an “international disgrace.”
Mr. Trump has sent open letters to about 20 countries this week — ranging from Japan to Iraq — telling them to expect higher tariffs starting August 1, after delaying his sweeping tariffs against dozens of nations in April. So far, the 50% tariff on Brazilian imports is the highest rate threatened against any country, and Brazil is the only country to get hit with a tariff this week after being spared by Mr. Trump’s April “Liberation Day” tariffs.
Unlike many other countries that have been threatened with tariff hikes, the U.S. runs a trade surplus with Brazil, meaning Brazil buys more American goods than the U.S. buys from Brazil. Last year, the U.S. exported about $49 billion worth of goods to Brazil, and Brazil exported just over $42 billion in goods to the U.S., according to Census Bureau figures.
Mr. Trump’s letter excoriated the South American country over the prosecution of Bolsonaro, who led the country before current Brazilian President Luiz Inacio Lula da Silva. The U.S. leader called the prosecution a “Witch Hunt that should end immediately.”
Bolsonaro was indicted last year for allegedly attempting a coup to remain in office after Lula defeated him in the 2022 elections. The plan allegedly included dozens of people and involved a plot to poison Lula and shoot a Brazilian Supreme Court justice. Bolsonaro’s defense team has vehemently denied the charges. Bolsonaro has also been barred from running for office until 2030, after casting doubt on the country’s electronic voting machines.
Mr. Trump has long expressed support for Bolsonaro, a right-wing populist sometimes known as “Trump of the Tropics.” He also lashed out at Brazil over the prosecution on Monday, calling it a “terrible thing” and an “attack on a Political Opponent.”
“LEAVE BOLSONARO ALONE!” Mr. Trump wrote on Truth Social on Monday.
Mr. Trump also criticized Brazil in his tariff letter for what he called “insidious attacks” on the “Free Speech Rights of Americans,” an apparent reference to the Brazilian Supreme Court’s scrutiny of Elon Musk-owned social media site X. And he alleged Brazil has an “unfair trade relationship” with the U.S., citing “Tariff, and Non-Tariff, Policies and Trade Barriers.”
In the letter, Mr. Trump ordered U.S. Trade Representative Jamieson Greer to open an investigation into Brazil over “attacks on the Digital Trade Activities of American Companies” and “other unfair Trading Practices.”
A report by the U.S. Trade Representative earlier this year said Brazil charged an average tariff of 11.2% on imports as of 2023. The report says Brazil imposes “relatively high tariffs on imports across a wide range of sectors,” and “U.S. exporters face significant uncertainty in the Brazilian market because the government frequently modifies tariff rates.” It also lists some other trade restrictions, like a tariff on ethanol.
As with the other countries that have faced tariff threats, Mr. Trump said his administration would “consider an adjustment” if Brazil were to change its trade practices.
Separately, Mr. Trump threatened an additional 10% tariff on any countries aligned with “the Anti-American policies of BRICS,” referring to a group of developing countries and emerging markets that includes Brazil.
Tariffs are a core part of Mr. Trump’s economic strategy. The moves have sparked fears of rising consumer prices and an economic slowdown, but Mr. Trump argues tariffs are necessary to revive U.S. manufacturing and punish what he views as unfair trade practices.
The president imposed steep tariffs on dozens of countries in early April, rattling markets, before quickly delaying most of them for three months while his administration sought to negotiate trade deals. With the three-month extension set to run out this week, the administration began sending letters to various countries informing them of higher tariffs starting in August.
