In a move that could escalate trade tensions, Donald Trump has unveiled a 50% tariff on Brazilian imports, effective August 1, 2025. Simultaneously, Trump condemned the trial of former Brazilian President Jair Bolsonaro, portraying it as politically motivated. Trump stated in a letter to the current Brazilian President, Luiz Inacio Lula da Silva, that he respected and admired Bolsonaro. These tariffs are partially a response to Brazil’s perceived attacks on free speech and American digital trade activities. Trump also initiated a Section 301 Investigation of Brazil. Additional tariffs were announced against Sri Lanka, Algeria, Iraq, Libya, the Philippines, Moldova and Brunei, with rates ranging from 20% to 30%. Trump has threatened to retaliate with further tariff increases if these countries raise their own tariffs on goods imported from the United States. He also specified that all tariffs must be paid starting August 1, 2025.
