American President Donald Trump has signaled that he will impose a draconian 50% tariff on Brazilian imports, heightening tensions with the South American country. This came through a tariff proposal letter posted publicly via Trump's social media channels.
In a letter, Trump made serious charges against Brazil, accusing it of having mounted "attacks" against American technology companies and conducted a "witch hunt" against former Brazilian President Jair Bolsonaro. Bolsonaro is now charged with attempting to subvert Brazil's 2022 presidential election, reports the BBC.
Responding online, Brazilian President Luiz Inácio Lula da Silva threatened to respond with equal counter-measures to any tariff hike at Brazil's expense. He also warned against what he considered interference in Brazil's judiciary.
Trump and Lula had also been at odds earlier in the week over Bolsonaro's trial. Then, Lula had categorically asserted: "No one is above the law," reaffirming that Brazil would repudiate "interference" by any external actor.
This latest communication to Brazil was one of 22 tariff announcements Trump made this week to trading partners around the world, including Japan, South Korea, and Sri Lanka, detailing trade constraints scheduled to begin on August 1. Most of these proposals revive tariff proposals initially floated in April and put on ice after adverse reactions from financial markets.
But Trump's threat to Brazil was more extreme, a severe increase from the originally threatened 10% tariff. Trump explained that the increase to 50% was "necessary. to correct the egregious injustices of the current regime."
Although the United States generally posts trade deficits against most nations, it has had a trade surplus against Brazil — exporting more to Brazil than it imports. All the same, Trump contended in his letter that Brazilian policies have disproportionately singled out U.S. technology companies. He said he would direct the U.S. Trade Representative to launch a Section 301 investigation into Brazil's digital trade practices, a step that indicates the possibility of more formal and long-term trade sanctions.
Trump has taken such actions before in his first presidency, most recently when Brazil was contemplating imposing taxes on technology giants.
Blaming the government of Brazil for censoring Americans, Trump posted that it was making "insidious attacks on Free Elections, and the basic Free Speech Rights of Americans," citing actions against "US Social Media platforms." His own business, Trump Media, has fought Brazilian court rulings suspending social media accounts.
One of the most high-profile instances concerned Elon Musk's platform X (formerly Twitter), which was temporarily suspended in Brazil for refusing to close down accounts that had been accused of disseminating disinformation regarding the 2022 election. Brazil's Supreme Court has since decreed that technology companies can be held accountable for content created by users on their sites.
Trump employed the letter to reaffirm his endorsement of Bolsonaro, describing him as a man he "respected greatly," and denouncing the legal action taken against the ex-Brazilian leader as "an international disgrace."
Trump and Bolsonaro had a close relationship with each other throughout their concurrent presidencies. Trump hosted Bolsonaro at the White House in 2019, and Bolsonaro was commonly called the "Trump of the Tropics." Both Trump and Bolsonaro lost their reelection campaigns and refused to publicly accept defeat.
Bolsonaro, Brazil's president between 2019 and 2022, is on trial for supposedly plotting a failed coup. In January 2023, as soon as Lula won the elections, thousands of Bolsonaro supporters broke into main government buildings in Brasília. Bolsonaro, who was abroad in the U.S. at the time, has refused both knowledge and complicity in the attack.
Comparing Bolsonaro's legal issues to his own, Trump stated earlier this week: "This is nothing more, or less, than an attack on a Political Opponent - Something I know much about!" Bolsonaro then thanked Trump for the display of solidarity.
Trump also targeted the BRICS Summit in Rio de Janeiro as "anti-American" and assailed the bloc — which comprises Brazil — saying he would put an extra 10% tariff on member states.
President Lula retorted forcefully to Trump's taunts, telling him on Monday: "He needs to know that the world has changed. We don't want an emperor."
Read also| Watch| ‘Modi, Modi’ Echoes in Namibian Parliament as PM Wins Hearts with Address
Read also| Trump Claimed He Threatened to 'Bomb Moscow' in Warning to Putin Over Ukraine Invasion
