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Former U.S. President Donald Trump has stated his intention to impose a 50% tax on goods originating from Brazil, escalating tensions with the South American nation.
In a tariff proposal shared via social media, Trump accused Brazil of “attacks” on U.S. technology companies and a “witch hunt” against former President Jair Bolsonaro, who faces legal scrutiny for his alleged role in attempts to overturn the 2022 election results.
Trump’s announcement follows earlier disagreements with Brazilian President Luiz Inácio Lula da Silva regarding Bolsonaro’s ongoing trial.
President Lula had previously asserted that Brazil would not tolerate “interference” and emphasized that “no one is above the law.”
He also criticized Trump for what he deemed “irresponsible” tariff threats made on social media platforms.
This week, Trump has disseminated 22 letters to various countries, including trade partners like Japan, South Korea, and Sri Lanka, outlining new tariffs slated to take effect on August 1.
These actions largely revive plans initially proposed in April but subsequently placed on hold after causing volatility in financial markets.
The message directed at Brazil represents a more targeted approach and proposes a substantial increase from the previously announced 10% tax on Brazilian goods.
Notably, the U.S. maintained a trade surplus with Brazil last year, exporting more goods to the country than it imported.
In his letter, Trump deemed the 50% tariff rate “necessary… to rectify the grave injustices of the current regime.”
He indicated that he would instruct the U.S. Trade Representative to initiate a “301 investigation” into Brazil’s digital trade practices.
Such a move would signify a shift towards a more established legal process, previously employed by the U.S. to impose tariffs, thus reinforcing the threat. During his first term, Trump adopted a similar measure regarding Brazil’s consideration of a tax targeting technology companies.
Trump’s letter accused the Brazilian government of “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,” including the censorship of “U.S. Social Media platforms.”
Trump Media, Trump’s social media company, is among the U.S. tech firms contesting Brazilian court rulings that have suspended social media accounts.
Brazil had also temporarily banned Elon Musk’s X, formerly known as Twitter, after the platform declined to ban accounts that Brazilian authorities deemed to be spreading misinformation about the 2022 presidential election.
Last month, Brazil’s Supreme Court ruled that social media companies can be held liable for content posted on their platforms.
In his letter, Trump expressed favorable sentiments towards former Brazilian President Bolsonaro, stating that he “respected him greatly” and calling the ongoing trial against him “an international disgrace.”
Trump and Bolsonaro maintained a cordial relationship during their overlapping presidencies, including a meeting at the White House in 2019 during Trump’s first term.
Both men subsequently lost presidential elections and have refrained from publicly acknowledging defeat.
Bolsonaro, who governed Brazil from 2019 to 2022, is currently on trial for allegedly attempting a coup, with thousands of his supporters storming government buildings in the capital in January 2023 following Lula’s election victory.
Bolsonaro was in the United States at the time of the incident and has denied any involvement in the riots or the alleged plot.
Earlier this week, Trump drew parallels between Bolsonaro’s prosecution and the legal challenges he has faced.
“This is nothing more, or less, than an attack on a Political Opponent – Something I know much about!” Trump stated. Bolsonaro subsequently thanked Trump for his support.
President Lula responded to Trump’s social media threats on Monday.
“He needs to know that the world has changed,” Lula stated. “We don’t want an emperor.”
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