US President Donald Trump announced on Wednesday, August 9, 50% tariffs on products imported from Brazil, starting August 1. This is the highest rate announced in letters sent by the Republican to countries since the beginning of this week.
Earlier, he had said that Brazil has not been good to the US and that he should announce new tariffs on Brazilian products by Thursday, the 10th.
The decision was justified primarily as a response to Brazil's treatment of former President Jair Bolsonaro and rulings by the Supreme Federal Court (STF) against American technology companies."Brazil's treatment of former President Bolsonaro, a highly respected world leader, is an international disgrace," Trump said."This trial should not be taking place. It is a witch hunt that must end IMMEDIATELY!" he wrote.
According to the American president, the measure also responds to the"insidious attacks on free elections" and the "SECREET and ILLEGAL censorship orders" that, according to him, have been issued by the Supreme Court against US social networks, under threat of"million-dollar fines and expulsion from the Brazilian market."
Trump also stated that bilateral trade has "long been unfair" and that the US needs to move away from a structure based on "tariff and non-tariff barriers" imposed by Brazil."Our relationship has been far from reciprocal," he stated. He warned that if the Brazilian government responds with increased tariffs, any additional percentage will be added to the 50% rate.
The president also announced the opening of a formal investigation into Brazil."Due to Brazil's continued attacks on the digital commerce activities of American companies, as well as other unfair trade practices, I am directing the United States Trade Representative (USTR), Jamieson Greer, to immediately initiate a Section 301 investigation," he wrote.
Section 301 of the Trade Act of 1974 allows the United States to respond to foreign practices deemed unfair or discriminatory that affect its trade.
The 50% tariff will apply to "any and all Brazilian products shipped to the United States," regardless of other sectoral tariffs in effect. Goods redirected by third parties to avoid the tariff will also be subject to the tax. Trump added that Brazilian companies can avoid the measure by switching to production within the United States.
The letter does not mention any additional 10% taxation on BRICS-aligned countries, as Trump has repeatedly suggested in recent days.
Earlier, he stated that Brazil"has not been good to us." The statement was made in a press conference during a multilateral luncheon with African leaders at the White House.
On Tuesday night, the 8th, he once again defended former president Jair Bolsonaro (PL). In a post on his social media Truth Social, the American again classified the investigations against Bolsonaro as a"witch hunt" and asked that he be left alone. It was the second time in two days that Trump came to the Brazilian's defense.
“Leave the Great former president of Brazil alone. WITCH HUNT!!!”, he wrote. The message cited Trump's first post in defense of Bolsonaro, published on Monday, the 7th. At the time, he said that Brazil is doing something “terrible” against the former president.
On Monday, the 7th, President Luiz Inácio Lula da Silva (PT) stated that Brazil is a “sovereign country” that does not accept “interference or tutelage from anyone” .
On Tuesday, the 8th, Finance Minister Fernando Haddad assessed that there is a"degree of uncertainty" in the US President's statements about raising tariffs that needs to be evaluated over time. He reinforced that Brazil is focused on promoting technical work with the US government.
More letters
On Wednesday, Trump said more letters about tariffs will be sent to trading partners. He reiterated that he has a good relationship with Chinese President Xi Jinping and that the country is paying too many tariffs to the US.
Earlier, Trump announced a 30% tariff rate on Sri Lanka. It was the seventh country to receive the tariff letter this Wednesday alone. The Republican has already announced tariffs for Algeria, the Philippines, Libya, Iraq, Moldova, and Brunei.