Trump Hits Brazil With 50% Tariff, Orders Probe Into Unfair Trade Practices-Reuters

WASHINGTON (BN24) — President Donald Trump escalated his trade offensive Wednesday by slapping a sweeping 50% tariff on Brazilian exports to the United States and ordering a formal investigation into what he called Brazil’s unfair trade practices, a move that could trigger even higher duties in the months ahead.

The tariff, effective August 1, dwarfs the 10% duty imposed on Brazilian goods in April and was announced in a letter to Brazilian President Luiz Inacio Lula da Silva. In the letter, Trump aired grievances over what he described as Brazil’s attacks on free elections and speech, as well as “secret and unlawful censorship orders to U.S. social media platforms.”

Trump also vented anger over what he called the “Witch Hunt” trial of Lula’s right-wing predecessor, Jair Bolsonaro.

Citing the Trade Act of 1974, Trump directed the U.S. Trade Representative’s office to launch an investigation under Section 301, the same legal tool used in earlier tariff wars. The probe could lead to additional levies on Brazilian goods if officials determine the country’s policies harm American interests.

Brazil, Latin America’s largest economy, ranked as the 15th largest U.S. trading partner in 2024, with two-way trade reaching $92 billion. Despite the tensions, the U.S. logged a $7.4 billion trade surplus with Brazil last year.

In the letter, Trump repeated language he has used in form letters to other leaders, describing Brazil’s trading relationship as “very unfair.”

The escalation comes as the Trump administration moves closer to finalizing a trade pact with the European Union, Washington’s biggest trading bloc. Trump said negotiations with both China and Europe were progressing and that he would likely inform EU officials of expected tariff rates within two days.

“They treated us very badly until recently, and now they’re treating us very nicely,” Trump said of EU leaders. “It’s like a different world, actually.”

EU trade chief Maros Sefcovic told lawmakers that the two sides had made good progress on a framework agreement and that a deal might be possible within days. Italian Economy Minister Giancarlo Giorgetti, however, warned that negotiations remained “very complicated” and could stretch up to the deadline.

According to EU and auto industry sources, negotiators are weighing a package that could include tariff cuts, import quotas, and credits to protect European automakers exporting to the U.S.

Wednesday’s move against Brazil was part of a broader tariff campaign Trump has unleashed over recent months. He announced new tariffs against seven smaller trading partners, including a 20% tariff on goods from the Philippines and levies ranging from 25% to 30% on products from Sri Lanka, Algeria, Iraq, Libya, Brunei, and Moldova.

These countries accounted for a combined $15 billion in U.S. imports in 2024, a fraction of Brazil’s trade volume.

Earlier this week, Trump also imposed 50% tariffs on imported copper and signaled he would soon introduce long-threatened duties on semiconductors and pharmaceuticals, rattling companies and fueling uncertainty in the global economy.

Following the new measures, researchers at Yale Budget Lab estimated that U.S. consumers now face an effective average tariff rate of 17.6%, the highest since 1934.

Trump’s administration has framed the tariffs as a powerful revenue generator. Treasury Secretary Scott Bessent said Washington has already collected about $100 billion this year and projected that total could rise to $300 billion by year’s end.

Despite Trump’s claim of “90 deals in 90 days,” so far only two agreements have been reached—one with Britain and one with Vietnam—and talks with India are still underway.

Massachusetts Governor Maura Healey, a Democrat, sharply criticized Trump’s moves.

“President Trump was elected to lower costs, and all he is doing is raising prices and hurting our businesses,” she said in a statement.