WASHINGTON DC: US President Donald Trump has escalated trade tensions by imposing a 50 percent tariff on Brazilian goods, effective August 1. The move comes amid his broader strategy to secure bilateral trade deals while criticizing Brazil’s legal proceedings against former leader Jair Bolsonaro.
In a letter to Brazilian President Luiz Inacio Lula da Silva, Trump called Bolsonaro’s trial an “international disgrace” and warned against its continuation. He also announced an investigation into Brazil’s trade practices, marking a sharp turn in relations between the two nations.
The tariff threat follows Brazil’s diplomatic protest over Trump’s earlier remarks on Bolsonaro’s coup trial. Prosecutors allege Bolsonaro attempted to reclaim power from Lula, though the former president denies involvement, citing insufficient military support.
Trump’s latest measure aligns with his aggressive trade policy, targeting countries where the US faces significant deficits. However, Brazil is an exception, as the US maintains a trade surplus with the South American nation.
This week, Trump has sent over 20 letters to trading partners, outlining new tariffs ranging from 20 to 30 percent for nations including the Philippines, Sri Lanka, Brunei, Algeria, Libya, Iraq, and Moldova. These duties are set to take effect on the same August 1 deadline.
While some rates remain close to April’s initial threats, others have been adjusted downward. Trump postponed the original June deadline, giving countries until August to negotiate or face higher tariffs.
The letters emphasize Trump’s demand for “Reciprocal” trade terms, urging nations to shift manufacturing to the US to avoid penalties. Retaliation could trigger further escalation, the warnings suggest.
Key allies like Japan, South Korea, Indonesia, Bangladesh, and Thailand have also received similar notices. Meanwhile, negotiations with the European Union remain in focus, with Trump hinting at an imminent tariff update for the bloc.
An EU spokesperson confirmed efforts to finalize a deal “in the coming days,“ signaling willingness for a provisional agreement. Beyond country-specific tariffs, Trump has introduced sectoral duties on steel, aluminum, and autos since returning to office.
Additional levies on copper (50 percent) and pharmaceuticals (up to 200 percent) are also planned, with incentives for manufacturers to relocate operations to the US. - AFP
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