On July 9, 2025, U.S. President Donald Trump announced a 50% tariff on Brazilian imports, effective August 1, citing the prosecution of former Brazilian President Jair Bolsonaro as a “witch hunt” and alleging unfair trade practices.
In a letter to Brazilian President Luiz Inácio Lula da Silva, Trump described Bolsonaro’s trial for an alleged coup attempt in 2022 as an “international disgrace.” Additionally, a new 50% tariff, an increase from the 10% rate in April, has been imposed, targeting Brazil’s alleged attacks on U.S. digital trade and free speech. This decision follows the initiation of a Section 301 investigation. As a result, the Brazilian real fell by 2.1%, reaching 5.5609 per dollar, per The Economic Times.
US President Donald Trump unveiled a new round of tariff demand letters on Wednesday, including a 50% rate on Brazil, one of the highest so far announced for the levies which are set to hit in August https://t.co/zdwGapuwi6
— Bloomberg (@business) July 9, 2025Bolsonaro has been charged with attempting to overturn his 2022 election loss and could face a conviction by September. Trump, who met Bolsonaro at Mar-a-Lago in 2020, referred to him as a “respected leader,” according to The Guardian. Despite a $7.4 billion U.S. trade surplus with Brazil in 2024, Trump claimed there were deficits. Lula condemned Trump’s interference as “irresponsible.” Additionally, Brazil’s Supreme Court has issued rulings on content moderation, resulting in fines against U.S. entities.
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The tariff is part of a series of 22 letters sent to countries such as Japan and South Korea, escalating Trump’s trade war, with rates ranging from 20% to 50%. Brazil’s coffee and orange juice exports, which account for 33% and 50% of the U.S. supply, are expected to experience price increases.
Analysts, including those from JPMorgan, are sceptical about the full implementation of these tariffs but caution that they could lead to inflation. Meanwhile, negotiations for a trade deal with the EU are ongoing, but no tariff letter has been issued yet.
