Brazil threatens to match Trump’s promised 50% tariff

Brazilian President Luiz Inácio Lula da Silva vowed in a Wednesday statement to match any tariff hikes imposed by the United States. Lula’s threat came hours after President Donald Trump released a letter stating his plan to charge a 50% tax on all Brazilian goods entering the country beginning Aug. 1. Brazil is a sovereign and independent nation that will not accept any form of tutelage, Lula wrote.

Trump described the U.S.-Brazilian trade relationship as unfair and far from reciprocal, which Lula alleged was inaccurate. U.S. data showed America having a $410 billion surplus in traded goods and services with Brazil over the past 15 years, Lula said. Respect and sovereignty are the values that guide Brazil’s international relationships, along with an unwavering defense for the interests of the Brazilian people, Lula added.

What reasons did Trump give for imposing the extra tariff? Trump’s Wednesday letter accused Brazilian officials of attacking the free election processes and American free speech, specifically on social media. The Brazilian Supreme Court issued hundreds of secret censorship orders on U.S.-based social media platforms, threatening millions of dollars in fines should they not comply, Trump wrote. Trump also took issue with Brazil’s ongoing prosecution of former President Jair Bolsonaro, describing his trial for allegedly attempting to overthrow Brazil’s 2022 election as a witch hunt.

Trump previously slammed Brazil’s treatment of Bolsonaro days before the new tariffs, and released a Monday statement insisting the former president’s innocence in the attempted coup d'état. Trump described Bolsonaro as a strong leader who loved his country and had a good head for trade. Bolsonaro is guilty of nothing more than fighting for the people of Brazil, the president said. Trump added that he planned to keep a close eye on the trial.

Lula denied Trump’s claims of online censorship, noting the difference between what he described as free expression and violent expression. Brazil rejects hateful and anti-democratic content on social media platforms, including racism, child pornography, and fraud, Lula said. Any company, domestic or foreign, must comply with Brazilian policies while operating in our territory, he added. The Brazilian president also reiterated Brazil’s sovereignty and warned that the country’s judicial proceedings will not be subject to foreign interference. Brazil's judicial branch is exclusively responsible for prosecuting those who planned a government coup, Lula affirmed.

Trump’s new tariffs came days after countries in the non-Western BRICS summit met in the Brazilian city of Rio de Janeiro.

Dig deeper: Read my previous report for more on Trump’s threat to tariff “anti-American” nations during the annual BRICS summit.