Trump Announces 50% Tariff on Brazilian Goods Over Free Speech Concerns

Donald Trump has announced plans to impose a 50% tariff on Brazilian goods, citing concerns over the South American nation's alleged undermining of free speech. This move significantly escalates tensions between the US and Brazil, marking a new chapter in their trade relations.

Trump's announcement came via his Truth Social platform, where he launched a scathing critique of the Brazilian government under Luiz Inácio Lula da Silva. He specifically targeted the handling of Jair Bolsonaro, who is facing charges related to an alleged coup plot. Trump described Bolsonaro as a highly respected leader and labeled the charges against him as a "Witch Hunt that should end IMMEDIATELY!"

The tariff, set to begin on August 1, is also a response to what Trump perceives as Brazil's "sneaky attacks on Free Elections and the basic Free Speech Rights of Americans." He accused Brazil's Supreme Court of issuing hundreds of secret and unlawful censorship orders against US social media platforms, threatening them with millions of dollars in fines and potential eviction from the country.

Trump's actions are part of a broader strategy to pressure trading partners into making deals or facing tariffs. This move follows a series of letters sent to 22 nations, including the imposition of 25-30% tariffs on countries such as Algeria, Brunei, Iraq, Libya, Moldova, the Philippines, and Sri Lanka. Earlier threats of 25% tariffs were also made against Japan and South Korea.

In response to Trump's tariff threats, Brazilian President Luiz Inácio Lula da Silva asserted that Brazil is a self-governing nation with its own institutions and will not allow external control. He refuted Trump's accusations, emphasizing that freedom of expression in Brazil should not be confused with aggression or violent actions. Lula also stated that all companies, whether from Brazil or other countries, must adhere to Brazilian laws to operate within the nation.

Brazil's Vice President and Trade Minister, Geraldo Alckmin, criticized Trump's proposed 50% tariff, calling it "inappropriate." Alckmin argued that there is no justification for higher tariffs on Brazilian goods, noting that the US has a trade surplus with Brazil. He also warned that new tariffs could backfire on the US economy, using the steel industry as an example. Brazil is the third-largest buyer of coal used in American steelmaking, and added tariffs would only increase US supply chain costs.

The proposed 50% tariff far exceeds the 10% duty already levied on Brazil as part of the “reciprocal” tariffs announced on April 2. This move appears to reaffirm Trump's earlier threat of imposing a 10% blanket tariff on all BRICS nations, a bloc in which Brazil is a founding member. The has accused BRICS of fostering “anti-American policies.”

Adding to the diplomatic strain, US Secretary Marco Rubio indicated in May that Washington was considering sanctions against Brazilian Supreme Court Justice Alexandre de Moraes. The judge has been at the center of political controversy after ordering the suspension of social media accounts accused of spreading misinformation. Earlier that day, Brazil’s foreign ministry summoned the acting US ambassador in response to an embassy statement that supported Jair Bolsonaro. Brazil’s Supreme Court has not commented on the matter.