Brazilian President Luiz Inacio Lula da Silva stated Wednesday that his nation will reply with reciprocity to U.S. President Donald Trump’s newly introduced 50% tariff charge on his nation’s exports, citing a just lately adopted Brazilian regulation that authorizes the federal government to take proportional countermeasures.
Trump stated Wednesday the U.S. will impose the tariff on imports from Brazil beginning Aug. 1, partly in retaliation for the continued prosecution of the nation’s former president, Jair Bolsonaro.
Trump stated in a letter that the brand new tariff — an enormous leap from the ten% charge the U.S. imposed on imports from Brazil in early April — can also be a response to the “very unfair commerce relationship” between the 2 international locations.
The letter to da Silva adopted almost two dozen others that Trump has just lately despatched to different world leaders, dictating steep new tariff charges on the products they promote to the U.S.
Brazil’s President Luiz Inacio Lula da Silva on the Mercosur Summit.
Image Alliance | Image Alliance | Getty Pictures
However the letter to Lula goes additional than the remainder, by imposing a brand new U.S. import tax charge explicitly as a punishment for a rustic participating in inside political and authorized affairs that Trump dislikes.
Da Silva replied to the letter Wednesday, saying Brazil would reply to the tariffs in accordance with its newly adopted financial reciprocity regulation.
“Brazil is a sovereign nation with unbiased establishments that won’t settle for being lectured by anybody,” wrote da Silva, in line with a CNBC translation of his social media put up.
The worth of Brazil’s foreign money, the true, fell greater than 2% in opposition to the U.S. greenback following Trump’s announcement.
Trump has beforehand sounded off on Brazil over its therapy of Bolsonaro, a vocal ally of the U.S. president who’s standing trial over his position in an alleged coup to overturn his 2022 reelection loss.
Trump known as the scenario “a global shame” within the letter, which he shared publicly in a Fact Social put up. He slammed the Bolsonaro trial as a “Witch Hunt,” echoing the language he used to explain the a number of legal investigations that he confronted earlier than profitable the 2024 U.S. presidential election.
Former Brazilian President Jair Bolsonaro talks to the media, after the Supreme Court docket voted that he ought to stand trial for allegedly making an attempt a coup after his 2022 electoral defeat, in Brasilia, Brazil, March 26, 2025.
Adriano Machado | Reuters
He additionally railed in opposition to “Brazil’s insidious assaults on Free Elections, and the basic Free Speech Rights of Individuals,” apparently referring to the Brazilian Supreme Court docket‘s current ruling that would maintain social media platforms liable for his or her customers’ content material.
Trump additionally claimed that Brazil’s commerce insurance policies have precipitated “unsustainable Commerce Deficits in opposition to america,” which threaten the U.S. financial system and nationwide safety.
However america has a items commerce surplus with Brazil, which totaled $7.4 billion in 2024, in line with the Workplace of the U.S. Commerce Consultant.
Da Silva known as out Trump’s false allegation of a commerce deficit in his response, citing U.S. authorities figures.
Trump additionally wrote that america is launching an investigation into potential unfair commerce practices by Brazil.
He stated that probe relies on “Brazil’s continued assaults on the Digital Commerce actions of American Corporations.”
“Please perceive that the 50% quantity is way lower than what is required to have the Degree Enjoying Area we should have along with your Nation,” Trump wrote. “And it’s essential to have this to rectify the grave injustices of the present regime.”
Parts of the letter to Lula match the verbiage of the 21 tariff letters that Trump has despatched to different world leaders since Monday.
All of these letters specify that the brand new blanket tariff charges are separate from different “sectoral” duties on imports of particular merchandise, reminiscent of metal, aluminum and vehicles.
All of them additionally ship a preemptive warning that if the international locations determine to lift their very own import taxes on American items “for any cause,” then the U.S. will improve its tariff charge by an equal quantity.
And so they all word that the U.S. “will, maybe, take into account an adjustment” if the international locations eliminate their tariff and non-tariff commerce limitations.
“These Tariffs could also be modified, upward or downward, relying on our relationship along with your Nation,” Trump says in all the letters. “You’ll by no means be upset with America of America.”
The recipients are a mix of main U.S. commerce companions, together with Japan and South Korea, and smaller economies, reminiscent of Moldova and Brunei.
The tariff charges for these 21 international locations vary from 20% to 40%. They’re all set to kick in on Aug. 1, and Trump has insisted that “no extensions might be granted.”
