The President of the United States, Donald Trump, declared a 50% tariff aimed at Brazil, criticizing the trial of the former Brazilian leader while expanding efforts to secure additional bilateral trade agreements with other nations.
In a letter directed to Brazil’s President, Luiz Inacio Lula da Silva, Trump denounced the treatment of ex-president Jair Bolsonaro, labeling it an “international disgrace.”
The letter further stated that the trial “should not be occurring.”
Additionally, he announced that Washington would initiate an investigation into Brazil’s trade practices.
Jair Bolsonaro, the former far-right president of Brazil, asserts that he was not involved in an alleged coup attempt to reclaim power from Lula, which prosecutors claim failed only due to insufficient military support.
Bolsonaro, who was defeated in the October 2022 elections, faces these accusations.
According to Trump’s letter, the 50% US tariff on Brazilian goods will be implemented starting August 1, mirroring a deadline that numerous other economies face.
This week, Trump has begun sending letters to trade partners as he intensifies his push for more deals, concentrating on nations with which the US has notable trade deficits.
Previously, Brazil had not been among those at risk of these increased duties, as the United States actually runs a trade surplus with Brazil.
Threats of escalation
Trump’s message to Lula adds to a series of over 20 such letters the US president has dispatched since Monday, detailing tariff rates as Washington aims to foster more trade agreements.
On Wednesday, he reached out to leaders of the Philippines, Sri Lanka, Brunei, Algeria, Libya, Iraq, and Moldova, outlining duty rates varying from 20% to 30%, also to take effect on August 1.
The levels outlined in this batch of documents closely align with those initially suggested in April, although certain partners received notably reduced rates this time around.
While in April Trump enacted a 10% levy on nearly all trading partners, he initially proposed and then held back higher rates for multiple economies.
The original deadline for these escalated tariffs was set for Wednesday, but Trump postponed this to August 1.
Countries facing potential elevated duties began receiving letters communicating US tariff rates on their exports.
In these communications, Trump defended his tariffs as a reaction to trade relations he believes are “far from reciprocal.”
The letters encouraged countries to produce goods within the United States to evade larger tariffs while threatening further repercussions if leaders responded with retaliation.
Other nations that have received Trump’s letters include close US allies like Japan and South Korea, along with Indonesia, Bangladesh, and Thailand.
EU agreement in ‘upcoming days’?
Analysts have observed that Asian nations have been a significant focus so far.
However, all attention is on the ongoing negotiations with major partners that have yet to receive such communications, particularly the European Union.
The Trump administration faces pressure to disclose more trade agreements.
Thus far, Washington has only secured deals with Britain and Vietnam, in addition to an arrangement to temporarily lower reciprocal tariffs with China.
On Tuesday, Trump mentioned that his administration was “probably two days away” from sending the EU a letter with an updated tariff rate for the bloc.
An EU spokesperson stated that the bloc aims to finalize a deal with the United States “in the coming days” and has expressed a willingness to come to a preliminary agreement.
In addition to tariffs targeting various countries, Trump has implemented sector-specific duties on steel, aluminum, and automobiles since returning to the White House in January.
Recently, Trump announced that tariffs are forthcoming on copper and pharmaceuticals.
The proposed rate for copper is set at 50%, while pharmaceutical products may face duties as high as 200%, though manufacturers will be allowed time to relocate their operations to the United States.
