Trump imposes 50% tariff on Brazil in response to Bolsonaro trial and ‘unjust’ trade practices.
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U.S. President Donald Trump answers questions during a multilateral lunch with African leaders in the State Dining Room of the White House on July 9, 2025, in Washington, DC. Win McNamee | Getty Images
President Donald Trump announced Wednesday that the U.S. will implement a 50% tariff on imports from Brazil starting August 1, partly as a reaction to the ongoing prosecution of the country’s former president, Jair Bolsonaro.
In a letter, Trump stated that the new tariff — a substantial increase from the 10% rate imposed on Brazil in early April — serves as a response to the “very unfair trade relationship” between the two nations. The communication to Brazil’s current president, Luiz Inacio Lula da Silva, follows nearly two dozen similar letters recently sent to other world leaders regarding steep new tariff rates on their goods selling to the U.S.
However, the letter to Lula takes a more aggressive stance, imposing a new U.S. import tax explicitly as a consequence of Brazil’s internal political and legal matters, which Trump opposes. Following Trump’s announcement, the value of Brazil’s currency, the real, fell more than 2% against the U.S. dollar.
Trump has previously criticized Brazil for its treatment of Bolsonaro, who has been a vocal ally, currently facing trial for his involvement in an alleged coup to overturn his 2022 election defeat. He labeled the situation as “an international disgrace” in the letter shared publicly on his social media platform. He termed the Bolsonaro trial a “Witch Hunt,” reminiscent of the language he used during his own legal challenges before securing the 2024 U.S. presidential election.
Furthermore, Trump condemned “Brazil’s insidious attacks on Free Elections and the fundamental Free Speech Rights of Americans,” apparently referencing a recent ruling by the Brazilian Supreme Court that could hold social media platforms accountable for their users’ content. He also asserted that Brazil’s trade practices have led to “unsustainable Trade Deficits against the United States,” which pose risks to the U.S. economy and national security. However, data from the Office of the U.S. Trade Representative shows that the U.S. maintained a goods trade surplus with Brazil, amounting to $7.4 billion in 2024.
The U.S. is also initiating an investigation into possible unfair trade practices by Brazil, as outlined in the letter. Trump indicated that the investigation will focus 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 create a Level Playing Field we must have with your Country,” Trump wrote. “This is essential to correct the significant injustices of the current regime.” Portions of the letter to Lula echo the language used in the 21 tariff letters sent to other world leaders since Monday.
The recipients include a mix of major U.S. trading partners like Japan and South Korea, alongside smaller economies such as Moldova and Brunei. Each letter specifies that the new blanket tariff rates are distinct from other “sectoral” duties on specific imports, including steel, aluminum, and vehicles.
All letters also convey a preemptive warning that should these countries raise their own import taxes on American goods “for any reason,” the U.S. will respond with an equivalent increase in tariff rates. Additionally, they note that the U.S. “will, perhaps, consider an adjustment” if the countries eliminate their tariff and non-tariff trade barriers.
“These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” Trump stated in the letters. “You will never be disappointed with The United States of America.”
