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    Trump threatens steep tariffs on Brazil, Lula vows retaliation

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    President Donald Trump on Wednesday announced plans to impose a sweeping 50% tariff on all Brazilian imports, citing what he called unfair trade practices and Brazil’s prosecution of former president Jair Bolsonaro. The move, set to take effect August 1, would mark the highest tariff rate the Trump administration has levied on any country so far.

    In a letter to Brazilian President Luiz Inácio Lula da Silva, posted on social media, Trump condemned Bolsonaro’s trial as a “witch hunt” and called for it to end “immediately.” Bolsonaro, a close Trump ally, is facing charges over his alleged role in efforts to overturn Brazil’s 2022 election. Trump described the case as “an international disgrace” and tied his tariff decision in part to Lula’s handling of it.

    Lula fired back hours later in a pointed response on X, saying Brazil “will not accept being abused by anyone” and pledging to match any U.S. tariffs with equal measures on American goods.

    “Any unilateral tariff increases will be met with reciprocal tariffs,” he warned, stressing that Brazil is “a sovereign country with independent institutions” and rejecting outside interference in the judiciary.

    The United States is Brazil’s second-largest trading partner after China, and economists have already warned the sharp jump from the current 10% rate to 50% could disrupt a rare trade surplus the U.S. enjoys. Last year Brazil exported more than $42 billion in goods to the U.S., including crude oil, steel, and coffee, while the U.S. posted a $7.4 billion surplus with Brazil in 2024, according to official U.S. figures.

    Trump’s letter nonetheless argued that Brazil’s policies have created “unstable trade deficits against the United States,” which he claimed threaten U.S. economic and national security. Lula dismissed the deficit claim as “false,” citing Washington’s own data.

    Trump’s announcement is part of a broader effort to expand tariffs worldwide. His letter to Lula was one of more than two dozen sent to foreign leaders this week outlining higher import duties.

    For now, both sides have signaled a willingness to escalate. “I will not accept being lectured by anyone,” Lula wrote.

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