Trump Hits Brazil with 50% Tariff Amid Bolsonaro’s ‘Witch Hunt’ Trial

Thu Jul 10 2025
Eric Whitman (363 articles)
Trump Hits Brazil with 50% Tariff Amid Bolsonaro’s ‘Witch Hunt’ Trial

US President Donald Trump on Wednesday imposed a sweeping 50 per cent tariff on all Brazilian imports, citing what he called a politically motivated “witch hunt” against former president Jair Bolsonaro. The move, revealed in a confrontational letter to President Luiz Inácio Lula da Silva, signifies a direct intervention in Brazil’s internal judicial matters and has heightened tensions between the two nations.
Trump accused the Lula government of persecuting Bolsonaro and violating free speech. “Due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,” he wrote on Truth Social, “I will be charging Brazil an extra 50 per cent tax on any goods it exports to the US.” The 50 per cent tariff will be imposed on all Brazilian exports, set to take effect on August 1. Trump suggested additional economic measures, stating that the current rate was “far less than what is needed to have the Level Playing Field we must have.”

President Lula promptly dismissed Trump’s assertions and charged him with overreach. “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” Lula stated, labeling the action as “abuse.” On Wednesday, Brasília summoned US Ambassador Gabriel Escobar twice and announced reciprocal trade measures in accordance with Brazil’s Economic Reciprocity Law.

The Bolsonaro trial centers on allegations of misconduct and legal violations during his presidency, examining the implications of his actions and decisions while in office. Bolsonaro narrowly lost the October 2022 election to Lula and refused to concede. In January 2023, his supporters stormed key government buildings in what was described as an alleged coup attempt.

Prosecutors allege Bolsonaro conspired to invoke a “state of siege,” plotted arrests of top judges, and discussed poisoning Lula. He, along with 33 others, was indicted in February 2025 and is currently on trial before Brazil’s Supreme Court. Bolsonaro asserts his innocence. On Wednesday, he stated, “Jair Bolsonaro is persecuted because he remains alive in the popular consciousness…” “That’s why they try to annihilate him politically, morally, and judicially.”

Trump, drawing parallels with his own legal troubles, reposted Bolsonaro’s statement and added, “Leave the Great Former President of Brazil alone.” “WITCH HUNT!!!” Trump asserted that the US–Brazil trade relationship is “very unfair,” yet data indicates a different reality. The Office of the US Trade Representative reports that in 2024, the US achieved a $7.4 billion trade surplus with Brazil, exporting $49.7 billion and importing $42.3 billion.

Trump’s letter accused Brazil of censoring US tech platforms. He initiated a new trade investigation into Brazil’s digital regulations, referencing court rulings that purportedly impact US-based media companies. The action follows Trump’s media firm filing a lawsuit in February against Brazilian Supreme Court Justice Alexandre de Moraes, who is overseeing Bolsonaro’s case.

Eric Whitman

Eric Whitman

Eric Whitman is our Senior Correspondent who has been reporting on Stock Market for last 5+ years. He handles news for UK and Europe. He is based in London