The new tariff now represents a significant increase from 10% and could cast a serious shadow over Brazil's trade ties with the US, which have traditionally seen the latter enjoy a surplus in the bilateral trade balance. Trump called the step retaliation for what he said were Brazil's unfair trade practices, and instructed the US Trade Representative to "conduct an investigation of Brazil's actions" under a section of the 1974 trade law that the White House has increasingly used to justify tariffs, raising questions on Capitol Hill about how the United States would meet its World Trade Organization obligations.
Trump's remarks also stirred both countries' simmering tensions over Bolsonaro's ongoing trial. He lauded the former president and described the legal proceedings as an "international disgrace. Bolsonaro is charged with offences over a failed attempt to overturn the 2022 election, and for his followers' storming of government buildings last January. He has denied responsibility, claiming to have been in the US at the time.
Lula Counter-Gambits with Warning Not to Interfere
Lula, Brazil's leftist former president Luiz Inácio Lula da Silva, fired back forcefully at Trump, saying the American leader had better back off from Brazil's justice system. "These tariff increases will be met with similar measures," he said, adding that he only believed in one law: "No one is above the law". "We don't want an emperor," Lula added, indicating frustration with what he views as outside interference.
Trump and Lula were already at odds this week over the trial of Bolsonaro, with Lula reiterating that Brazil would respect an independent judiciary. Bolsonaro thanked Trump for his support in reply to Trump's comments.
Trump also expanded his tariff threats to other countries, saying that a 50% tariff on copper imports would start on 1 August. He claimed it was necessary to do so in the name of national security. Until now, Trump has sent 22 letters to countries including Japan, South Korea and Sri Lanka detailing new tariffs expected to kick in in early August. Many of these letters resurrect proposals that were first floated in April, though most were put on hold after financial markets recoiled.
Tech Feuds and BRICS Critique Exacerbate Splits
Trump also criticised Brazil's oversight of social media companies, accusing them of suppressing free speech and censoring American companies. And he cited Brazilian court decisions against American tech companies, including a ban on platforms like Elon Musk's X (formerly Twitter) and his own social media company, Trump Media. Brazil suspended X temporarily after it refused to take down misinformation about the 2022 elections.
Adding to the strains, Trump trashed the most recent BRICS summit in Rio de Janeiro. The bloc — which collectively represents Brazil, Russia, India, China and South Africa — was referred to as "anti-American" by Trump, who said there would also be a 10% tariff on the member countries.
Brazil's highest court recently ruled that social media companies could be held responsible for user content, adding to tensions with US tech firms. This move has faced criticism from free speech advocates, and it put Trump in line with Bolsonaro on the issue.
Trump and Bolsonaro have gotten along swimmingly during their concurrent presidencies, but Lula has shown he won't take outside interference lightly with regard to Brazil's own legal arena.
With trade and political tensions rising between the United States and Brazil, both countries seem headed for more acrimony unless a diplomatic solution is found.
