A new U.S. tariff package targeting Brazilian imports came into effect on Wednesday, imposing a steep 50% duty on selected products — one of the highest tariff rates ever imposed on a specific country by the United States.
The move comes just seven days after former U.S. President Donald Trump signed the executive order, marking a significant escalation in trade and diplomatic tensions with Latin America’s largest economy.
Trump Targets Brazilian Judiciary Over Bolsonaro Prosecution
Despite Brazil not being initially expected to face increased tariffs beyond the standard 10% levied on many imports, Trump announced the exceptionally high rate of 50% in response to what he described as a "witch hunt" by Brazil’s judiciary.
Trump specifically criticized the ongoing legal proceedings against former Brazilian President Jair Bolsonaro, who is accused of attempting a coup following his defeat in the 2022 presidential elections. He condemned the actions of Brazilian Supreme Court Justice Alexandre de Moraes, who has been spearheading the investigation, and the U.S. has now imposed sanctions on the judge.
Lula Responds: “Attack on National Sovereignty”
Brazilian President Luiz Inácio Lula da Silva denounced the tariffs as an attack on his country’s sovereignty. However, he downplayed the potential impact of the move, stating that only 36% of Brazilian exports to the U.S. would be affected by the new taxes.
The tariffs exempt hundreds of products, including nuts, energy products, aviation components, and orange juice. However, key sectors like coffee will now face the full 50% duty.
Wider Implications
The imposition of tariffs could strain U.S.-Brazil relations and disrupt trade flows, particularly in strategic commodities. The timing, just months ahead of the U.S. presidential elections, has also drawn criticism from economists who warn that politically motivated trade policy could damage global supply chains.