BRASILIA – Brazil and the United States escalated their row Wednesday (Thursday Manila time) over President Donald Trump’s support for coup-accused ex-leader Jair Bolsonaro, with the American president slapping a 50 percent tariff on one of its main steel suppliers.
Leftist Brazilian counterpart Luiz Inacio Lula da Silva threatened to reciprocate.
Trump has strongly criticized the prosecution of right-wing ally Bolsonaro, who is on trial for allegedly plotting to cling on to power after losing 2022 elections to Lula.
Brasilia on Wednesday summoned Washington’s top envoy to the country to explain an embassy statement describing Bolsonaro as a victim of “political persecution” — echoing Trump’s claims of a “witch hunt” against the 70-year-old Brazilian firebrand. AFP
Trump then announced he would slap a 50 percent tariff on Brazilian imports starting August 1, citing “Brazil’s insidious attacks on Free Elections” and warning of escalation if the country retaliates.
In a letter addressed to Lula, Trump criticized the treatment of Bolsonaro as an “international disgrace” and said the trial “should not be taking place.”
He added Washington would launch an investigation into Brazil’s trade practices.
While Trump has been issuing letters to trading partners — focusing on those his country runs a deficit with — Brazil had until now not been among those threatened with higher duties come August 1.
The South American powerhouse is the second-largest exporter of steel to the United States after Canada, shipping four million tons of the metal in 2024.
The new 50 percent tariff was independent of sector-specific levies, with the US recently doubling duties on steel and aluminum imports to 50 percent.
Lula wrote on X that “any unilateral tariff increases will be addressed in light of the Brazilian Law of Economic Reciprocity.”
Trade between the two countries reached $41.7 billion between January and June, with $20 billion for exports from Brazil and $21.7 billion for US products, according to Brazilian government data.
