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Trump announces 50% tariff on Brazil over Bolsonaro trial, 'unfair' trade

July 9, 2025
10:37 PM
4 min read
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President Donald Trump said the U.S. will impose a 50% tariff on imports from Brazil.

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investment

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Published

July 9, 2025

10:37 PM

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CNBC

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economymanufacturingagriculturemarket cyclesseasonal analysisgeopolitical

President Donald Trump said the U

Will impose a 50% tariff on imports from Brazil starting Aug

The massive new trade levy is partly in retaliation for the secution of the country's former president, Jair Bolsonaro, Trump wrote in a letter

The tariff is also in response to the "unfair trade relationship" between the two countries, Trump wrote — though the U

Has a trade goods surplus with Brazil

President Donald Trump answers questions during a multilateral lunch with African leaders in the State Dining Room of the White House July 9, 2025 in Washington, DC

Win McNamee | Getty ImagesPresident Donald Trump said Wednesday the U

Will impose a 50% tariff on imports from Brazil starting Aug. 1, partly in retaliation for the secution of the country's former president, Jair Bolsonaro

Trump said in a letter that the new tariff — a massive jump from the 10% rate the U

Imposed on imports from Brazil in early April — is also a response to the "very unfair trade relationship" between the two countries

The letter to Brazil's current president, Luiz Inacio Lula da Silva, ed nearly two dozen others that Trump has recently sent to other world leaders, dictating steep new tariff rates on the goods they sell to the U

But the letter to Lula goes further than the rest, by imposing a new U

Import tax rate explicitly as a punishment for a country engaging in internal political and legal affairs that Trump diss

The value of Brazil's currency, the real, fell more than 2% against the U

Dollar ing Trump's announcement

Trump has previously sounded off on Brazil over its treatment of Bolsonaro, a vocal ally of the U

President who is standing trial over his role in an alleged coup to overturn his 2022 reelection loss

Trump called the situation "an international disgrace" in the letter, which he d publicly in a Truth Social post

He slammed the Bolsonaro trial as a "Witch Hunt," echoing the language he used to describe the multiple criminal investigations that he faced before winning the 2024 U

Presidential election

Former Brazilian President Jair Bolsonaro talks to the media, after the Supreme Court voted that he should stand trial for allegedly attempting a coup after his 2022 electoral defeat, in Brasilia, Brazil, March 26, 2025

Adriano Machado | ReutersHe also railed against "Brazil's insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans," apparently referring to the Brazilian Supreme Court's recent ruling that could hold social media platforms liable for their users' content

Trump also claimed that Brazil's trade policies have caused "unsustainable Trade Deficits against the United States," which threaten the U

Economy and national security

Has a goods trade surplus with Brazil, which totaled $7. 4 billion in 2024, according to the Office of the U

Is also launching an investigation into potential unfair trade practices by Brazil, Trump wrote in the letter

He said that be is based on "Brazil's continued attacks on the Digital Trade activities of American Companies. ""Please understand that the 50% number is far less than what is needed to have the Level Playing Field we must have with your Country," Trump wrote. "And it is necessary to have this to rectify the grave injustices of the current regime. "Portions of the letter to Lula match the verbiage of the 21 tariff letters that Trump has sent to other world leaders since Monday

All of those letters specify that the new blanket tariff rates are separate from other "sectoral" duties on imports of specific ducts, such as steel, aluminum and cars

They all also der a preemptive warning that if the countries decide to raise their own import taxes on American goods "for any reason," then the U

Will increase its tariff rate by an equivalent amount

And they all note that the U. "will, perhaps, consider an adjustment" if the countries get rid of their tariff and non-tariff trade barriers. "These Tariffs may be modified, upward or downward, depending on our relationship with your Country," Trump says in all of the letters. "You will never be disappointed with The United States of America. "The recipients are a blend of major U

Trade partners, including Japan and South Korea, and smaller economies, such as Moldova and Brunei

The tariff rates for those 21 countries range from 20% to 40%

They are all set to kick in on Aug. 1, and Trump has insisted that "no extensions will be granted.