In an impressive letter sent to the dictator Luiz Inácio Lula da Silva, President Donald Trump announced the imposition of a 50% tariff on all Brazilian products entering the United States starting August 1.
The measure, according to Trump, is a response to an accumulation of trade grievances and what he described as "attacks" by Brazil against freedom of expression and American digital companies.
Trump begins his letter with a passionate defense of his ally, former President Jair Bolsonaro, stating that "the way Brazil has treated former President Bolsonaro [...] is an international disgrace" and describing the judicial process against him as "a witch hunt that must end immediately."
La carta de Trump a Lula.
The letter also addresses the economic and trade sphere. Trump points out that the bilateral relationship with Brazil has been "far from reciprocal" and accuses Brazil of implementing unfair tariff and non-tariff policies.
In that context, he justified the application of the new 50% tariff in a blunt manner: "Starting August 1, 2025, we'll charge Brazil a 50% tariff on all Brazilian products shipped to the United States, separate from all sectoral tariffs," Trump wrote.
The American president also linked the decision to the situation of American social networks in Brazil, denouncing that the Brazilian Supreme Federal Court had issued "hundreds of SECRET and ILLEGAL censorship orders" against American digital platforms, threatening them with "millions of dollars in fines and expulsion from the Brazilian market."
La carta de Trump a Lula.
Trump warned that any tariff increase adopted by Brazil in retaliation will be countered with an equivalent amount added to the already announced 50%. He also revealed that he ordered the United States Trade Representative, Jamieson Greer, to initiate an investigation under Section 301 against Brazil for its "unfair trade practices."
Nevertheless, he left the door open for dialogue: "If you wish to open your closed trade markets to the United States, and eliminate your tariff and non-tariff policies, we might consider an adjustment to this letter," he stated, adding that these tariffs "may be modified, up or down, depending on our relationship with your country."
Finally, Trump closed with a message of opportunity for Brazilian entrepreneurs: "There will be no tariff if Brazil, or companies within your country, decide to build or manufacture products within the United States," promising "fast, professional, and routine" authorizations.
