The American President Donald Trump has announced an import tariff of 50 percent on products from Brazil. It is one of the highest tariffs announced so far. They will take effect in August.
For Brazil, this means a substantial tariff increase. After Trump’s announcements in April, the South American country assumed a “reciprocal” tariff of only 10 percent. Shortly after the announcement of the tariff, the Brazilian real lost almost 3 percent in value against the dollar.
Trump also said on Wednesday that he will impose a tariff of 30 percent on products from Algeria, Libya, Iraq, and Sri Lanka. Furthermore, there will be tariffs of 25 percent on products from Brunei and Moldova, and a tariff of 20 percent on goods from the Philippines.
The tariffs were largely in line with the tariffs Trump had already announced in April. A trade deal has not been reached with all the countries that have received letters.
Trump came up with tariffs for numerous countries in April. He later limited them and set the deadline to reach agreements on trade tariffs to July 9. It is now known that this deadline has been postponed to August 1.
The European Union is also threatened with such a letter. In Europe, however, there is cautious optimism that it will be possible to reach a deal with the US in time.
Trump criticizes trial of former President Bolsonaro
In his letter to the Brazilian government, Trump also took the opportunity to vent his anger over the treatment of former President Jair Bolsonaro. He is on trial for an attempted coup after the lost elections of late 2022. His supporters then stormed government buildings, and according to prosecutors, Bolsonaro was aware of a plan to assassinate leftist President Luiz Inacio Lula da Silva.
Trump called on the authorities to drop the charges against Bolsonaro. “This trial should not take place. It is a witch hunt that must stop immediately!” The American president had already used the term “witch hunt” earlier this week. The American embassy in Brazil then also spoke of a “political persecution”.
The American envoy in Brazil must report to the Brazilian Ministry of Foreign Affairs to explain Trump’s statements, it was announced on Wednesday.