Trump’s Tariff Against Brazil – A Purely Economic Decision — Or A Calculated Political Message? (Image: AP)
United States President Donald Trump’s letter landed like a grenade in Brazil, with President Luiz Inácio Lula da Silva warning of imposing equal tariffs under the country’s ‘Law of Reciprocity’. The relationship between Brazil and the United States is already at an all-time low. With Trump imposing tariffs, it is being speculated if it is a purely economic decision — or a calculated political message?
Trump Imposes 50% Tariffs On Brazil
In a letter, US President Donald Trump said that Brazil will face a 50 per cent tariff, adding that it will start from August 1. Trump said that the 50 per cent tariffs would be separate from all sectoral tariffs.
Brazil is one of the few countries that buys more than the US than it sells, maintaining a trade surplus. The US is Brazil’s second largest trading partner after China and the tariffs are a major increase on the 10 per cent that were announced in April.
In his letter, US President Donald Trump linked the new tariffs to Brazil’s treatment of country’s former President Jair Bolsonaro, who is on trial over charges of plotting a coup. The levies were imposed due “in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,” the letter said.
The Bolsoaro Angle
Trump, a long-time ally of Bolsonaro, has openly condemned the judicial action and has been accused the current Brazilian administration of persecuting Bolsonaro. Trump had called the proceedings against Bolsonaro a “witch-hunt” that “should end immediately.” “This trial should not be taking place,” Trump had said as he warned of US action if the action persists. Notably, Bolsonaro has been charged with attempting to overturn a presidential election. Bolsonaro maintains that he is being politically persecuted by Brazil’s Supreme Court over his charges on the alleged plot to remain in power after his 2022 election loss to Lula.
“I have gotten to know Jair Bolsonaro, and he was a strong Leader, who truly loved his Country. Brazil is doing a terrible thing on their treatment of former President Jair Bolsonaro… He is not guilty of anything, except having fought for THE PEOPLE,” Trump had recently posted online.
Bolsonaro and Trump developed a good relationship during their respective terms. They frequently met at summits and other venues, including the White House and Mar-a-Lago. Trump has even linked the ongoing proceedings against Bolsonaro with the legal troubles he faced over the January 6 Capitol attack. Trump has claimed that the two proceedings have been ‘politically motivated’.
At a 2019 United Nations event, Bolsonaro reportedly told Trump “I Love You”, and was seen saluting the US flag. Bolsonaro repeatedly praised Trump’s leadership during his term and was called as “Trump of the Tropics” by the media. Notably, Bolsonaro had fled to Florida before Lula’s inauguration in 2023.
Ahead of this, hundereds of Bolsonaro’s suuporters – known as ‘Bolsonaristas’ – had stormed the Brazil’s Congress, Supreme Court and the presidential palace in an apparent attempt to the overturn the election result. Bolsonaro has denied any connection with the event, popularly seen as a Brazilian version of the US Capitol Building siege by MAGA supporter.
Can Trump Tariffs Prove To Be A Lifeline For Lula?
In a country where more than 55 per cent of the population disapproves of Trump, Lula vowed retaliatory tariffs if the US follows through on 50 per cent import taxes. Lula warned he will trigger Brazil’s reciprocity law approved by Congress earlier this year if negotiations with the US fail. “If there’s no negotiation, the reciprocity law will be put to work. If he charges 50 (per cent tariffs) from us, we will charge 50 from them,” Lula was quoted as saying.
Trump’s tariff threat may serve as a lifeline for Lula, who has reportedly been struggling with falling popularity rates, according to the BBC. Brazil is headed for a presidential election in October 2026.
The same has been evident in the recent support that the leaders have extended to Lula. “No citizen, especially representatives elected by the people, can tolerate foreign aggression against Brazil, regardless of the alleged justification. It’s time for true patriotism,” wrote Alessandro Vieira, a centrist senator who usually has a critical stance against Lula, reported BBC.
“Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage. The judicial proceedings against those responsible for planning the coup d’etat fall exclusively under the jurisdiction of Brazil’s Judicial Branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions,” Lula had said in response to Trump’s remarks.
