Following the high tariffs against Brazil announced by US President Donald Trump, both countries are heading towards a trade conflict.

Trump imposes 50 percent tariffs on Brazil
On Wednesday evening, Trump announced a 50 percent tariff on imports of Brazilian products starting August 1, coupled with sharp criticism of Brazilian President Luiz Inácio Lula da Silva. Lula announced retaliatory measures and emphasized that his country would not be patronized by anyone. Any unilateral increase in tariffs would be met in accordance with Brazil's economic reciprocity law.
Trump defends Bolsonaro: Witch hunt must end
Trump criticized Brazil for its handling of controversial former President Jair Bolsonaro. The right-wing former president is on trial for allegedly plotting a coup against the government of his successor, Lula, after his 2022 election defeat. He denies the allegations. Trump wrote in the letter that Bolsonaro was highly respected during his time in office. The US president demanded: "This is a witch hunt that must end IMMEDIATELY!"
Lula countered on Platform X: "Sovereignty, respect, and the unwavering defense of the interests of the Brazilian people are the values that guide our relationship with the world." At the same time, he emphasized that the legal proceedings against those responsible for planning the coup were the exclusive responsibility of the Brazilian judiciary and therefore not subject to interference or threats that could jeopardize the independence of national institutions.
Brazil is the largest economy in South America. The United States is the second-largest trading partner after China and a major investor in the country. According to the U.S. Census Bureau, total U.S. trade in goods with Brazil amounted to approximately $92 billion in 2024. U.S. exports of goods to Brazil amounted to $49.7 billion, while imports from Brazil amounted to $42.3 billion. This resulted in a U.S. trade surplus of $7.4 billion.
Customs letters also to other countries
Hours earlier, Trump had already announced another wave of tariff letters. The European Union was initially not among them. The new letters were addressed to Iraq, Libya, Algeria, Moldova, the Philippines, Brunei, and Sri Lanka. Since Monday, the US President has been announcing the new customs rules for goods entering the US. He justifies the tariffs by citing a current imbalance.
This is the current status starting August 1st:
* Japan: 25 percent
* South Korea: 25 percent
* Malaysia: 25 percent
* Kazakhstan: 25 percent
* South Africa: 30 percent
* Laos: 40 percent
* Myanmar: 40 percent
* Tunisia: 25 percent
* Bosnia and Herzegovina: 30 percent
* Indonesia: 32 percent
* Bangladesh: 35 percent
* Serbia: 35 percent
* Cambodia: 36 percent
* Thailand: 36 percent
* Libya: 30 percent
* Iraq: 30 percent
* Algeria: 30 percent
* Moldova: 25 percent
* Philippines: 20 percent
* Brunei: 25 percent
* Sri Lanka: 30 percent
* Brazil: 50 percent
Tariffs on copper
Trump also announced that the previously announced 50 percent tariffs specifically on copper will also apply across all countries starting August 1. The US president wrote on the Truth Social platform: "America will rebuild a dominant copper industry."
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