U.S. President Donald Trump has sent a strong warning to Brazil, threatening to impose a massive 50% tariff on all Brazilian exports to the United States starting August 1. The move came in a fiery letter addressed to Brazilian President Luiz Inácio Lula da Silva, which Trump posted on his Truth Social platform.
Trump Demands Lula Stop Bolsonaro Trial or Face Economic Punishment
In the letter, Trump accused Lula of carrying out a “witch hunt” against Brazil’s former president, Jair Bolsonaro. Bolsonaro is currently on trial for allegedly plotting to overturn the 2022 election results and possibly assassinate Lula. Trump, who has close ties with Bolsonaro, demanded that the trial be stopped immediately.
Trump stated that Brazil could avoid the tariff if Lula or Brazilian companies choose to manufacture goods in the United States. This offer mirrors similar terms Trump has sent to 21 other countries this week as part of his aggressive trade strategy.
The tariff threat has raised alarm across global markets and triggered a strong response from Brazil’s leadership.
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Lula Fires Back, Vows to Retaliate
President Lula quickly responded to Trump’s threat in a firm statement posted on X, formerly Twitter. Lula asserted that Brazil is a sovereign country with independent institutions and will not tolerate external interference. He warned that if the U.S. imposes the 50% tariff, Brazil will respond in accordance with its Law of Economic Reciprocity.
This marks the first time in months that a country has pledged to directly retaliate against Trump’s tariff threats. Brazil is among the few nations with a trade deficit with the U.S., meaning it buys more American goods than it sells.
According to U.S. Census Bureau data, Brazil imported $6.8 billion worth of goods from the U.S. last year. Major American exports to Brazil include aircraft, fuels, industrial machinery, and electrical equipment. A matching 50% tariff from Brazil could hurt several key American industries.
Since April, goods from Brazil have already been facing a 10% baseline tariff under Trump’s “reciprocal” trade policy. The July 10 deadline for reaching trade agreements has now been extended to August 1. If no deal is reached by then, the 50% rate will take effect.
A Week of Tariff Letters and Global Shockwaves
Brazil is just one of 22 countries to receive a tariff warning letter from President Trump this week. Other nations include the Philippines, Sri Lanka, Moldova, Brunei, Algeria, Libya, and Iraq. The proposed duties vary by country, with some as high as 50%.
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What sets the Brazil letter apart is that it focuses not on trade deficits but on political events—specifically the trial of Jair Bolsonaro. Trump did not mention economic data in the letter, instead targeting what he sees as unfair treatment of a close ally.
Trump has used similar tactics before. Earlier this year, he threatened Colombia with rising tariffs unless it agreed to accept deportees from the U.S. Colombia complied and avoided the economic penalty.
Meanwhile, Trump also announced a 50% tariff on copper imports this week, citing national security concerns. “Copper is the second most used material by the Department of Defense,” Trump said on Truth Social. His announcement caused copper prices to surge, with futures hitting a record high.
Ed Mills, a policy analyst at Raymond James, said he was surprised it took this long for copper tariffs to be announced. Ole Hansen of Saxo Bank warned that the U.S. still imports over half of its copper and has no quick solution to make up for that shortage. He called the 50% copper tariff “a massive tax on consumers of copper.”
With tensions rising and the August 1 deadline looming, Trump’s sweeping tariff threats are shaking up global trade and diplomacy—especially with key nations like Brazil.