Tensions between the United States and Brazil have suddenly burst open. Brazil’s president promised to reciprocate against President Trump’s tariffs.
The United States and Brazil appeared to have launched a sudden trade war on Wednesday.
First, President Trump said that he planned to impose a 50 percent tariff on all Brazilian imports, partly in retaliation for what he sees as a “witch hunt” against his political ally, former President Jair Bolsonaro, who is facing trial for attempting a coup.
In a letter to President Luiz Inácio Lula da Silva of Brazil, Mr. Trump wrote that the new tariffs would take effect on Aug. 1. “The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace.”
A few hours later, Mr. Lula said that Brazil would reciprocate against the tariffs. “Brazil is a sovereign country with independent institutions that will not accept being abused by anyone,” he said in a statement. He added that the case against Mr. Bolsonaro “is the sole responsibility of the Brazilian Judiciary.”
The quickly escalating dispute has the potential for major economic and political repercussions, especially in Brazil. The United States is Brazil’s second largest trading partner after China, and Mr. Trump appears to be demanding an end to Mr. Bolsonaro’s prosecution to lift the steep tariffs.
Mr. Trump’s effort to use tariffs to intervene in a criminal trial in a foreign nation is an extraordinary example of how he wields levies as a one-size-fits-all cudgel — and how they can yield economic destruction as a result.
In his letter, Mr. Trump said the 50 percent tariff was needed to “have the Level Playing Field we must have with your Country” and “to rectify the grave injustices of the current regime.”
Mr. Trump also incorrectly said the United States had a trade deficit with Brazil. For years, the United States has generally maintained a trade surplus with Brazil. The two countries had about $92 billion in trade together last year, with the United States enjoying a $7.4 billion surplus in the relationship. The top products traded are aircraft, oil, machinery and iron.
Mr. Trump wrote that the tariffs were also in response to “SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms” and that he had ordered U.S. officials to open a trade investigation into Brazil for “continued attacks on the Digital Trade activities of American Companies.”
Justice Alexandre de Moraes, the Brazilian Supreme Court justice who is overseeing the case against Mr. Bolsonaro, has ordered tech companies to take down hundreds of accounts that he said threatened Brazil’s democracy. His moves have made him a top target of the right in Brazil and the United States.
Mr. Lula said on Wednesday that the Supreme Court is enforcing Brazilian law. “In Brazil, freedom of expression is not to be confused with aggression or violent practices,” he said.
Ahead of the tariff threats, Mr. Trump and Mr. Lula traded barbs on Monday.
Mr. Trump publicly criticized the criminal case against Mr. Bolsonaro, which focuses on the former president’s attempts to hold on to power after losing Brazil’s 2022 election. He drew comparisons to his own criminal charges after losing the 2020 election. “It happened to me, times 10,” Mr. Trump wrote online on Monday. “I’ll be watching the WITCH HUNT of Jair Bolsonaro, his family, and thousands of his supporters, very closely.”
Mr. Lula quickly fired back. “I think it’s very wrong and very irresponsible for a president to be threatening others on social media,” the Brazilian president told reporters on Monday. “He needs to know that the world has changed. We don’t want an emperor.”
Our economics reporters — based in New York, London, Brussels, Berlin, Hong Kong and Seoul — are digging into every aspect of the tariffs causing global turmoil. They are joined by dozens of reporters writing about the effects on everyday people.
Brazil’s Supreme Court is widely expected to convict Mr. Bolsonaro later this year, potentially leading to prison time.
In January, Mr. Bolsonaro told The New York Times that he hoped Mr. Trump would come to his aid. Since then, Mr. Trump’s media company sued Justice Moraes, accusing him of censoring right-wing voices.
This week Mr. Trump also said that Mr. Bolsonaro should be able to run in Brazil’s presidential election next year. Brazil’s electoral court has ruled him ineligible because of his criticism of Brazil’s election systems.
For years Mr. Bolsonaro attacked the reliability of Brazil’s ballot machines, saying that if he lost an election it would be because of fraud from the left. He largely pointed to anomalies that security researchers determined were not fraud.
After he lost the 2022 election, Mr. Bolsonaro questioned the results — despite a review from Brazil’s military that supported them — and looked to Brazil’s Constitution to find ways to prevent Mr. Lula from taking office. That included meeting with military commanders about taking control of the government, which the majority of them refused to do.
Convinced the election was stolen, thousands of Bolsonaro supporters stormed Brazil’s halls of power a week after Mr. Lula took office, calling on the military to intervene.
Federal police and prosecutors have argued that Mr. Bolsonaro’s actions amount to federal crimes, and over the past several months, the former president and several of his allies have testified before Brazil’s Supreme Court.
Federal police have also accused Mr. Bolsonaro of being aware of a plot to assassinate Mr. Lula and a Brazilian Supreme Court justice. Mr. Bolsonaro has denied those accusations.
On Wednesday, the U.S. Embassy in Brazil joined the criticism of the case against Mr. Bolsonaro.
“Jair Bolsonaro and his family have been strong partners of the United States. The political persecution against them, and their supporters, is a disgrace and falls well below the dignity of Brazil’s democratic traditions,” the embassy said in a statement. “The president’s statement is clear and we echo the message. We will be watching closely.”
In response, Brazil’s foreign ministry summoned the top U.S. diplomat in Brazil, Gabriel Escobar, for a meeting.
After that meeting, Mr. Trump published his letter to Mr. Lula, threatening the tariffs. The foreign ministry then again summoned Mr. Escobar to confirm the letter, because the Brazilian government had not yet received it, according to a Brazilian government official who spoke on the condition of anonymity to discuss a private conversation.
When Mr. Escobar confirmed the letter, Brazilian officials told him they were rejecting the letter because it was offensive and inaccurate, the official said.
