WASHINGTON. U.S. President Donald Trump escalated his global trade offensive on Wednesday by imposing a steep 50% tariff on Brazilian exports to the United States, while ordering an investigation into Brazil’s trade practices under Section 301 of the Trade Act of 1974.
In a formal letter to Brazilian President Luiz Inacio Lula da Silva, Trump expressed outrage over what he described as a “Witch Hunt” trial of former right-wing president Jair Bolsonaro. He also criticized Brazil for what he called attacks on democratic freedoms and “SECRET and UNLAWFUL Censorship Orders” issued to U.S.-based social media platforms.
The 50% tariff, set to take effect on August 1, is significantly higher than the 10% duty imposed on Brazilian goods earlier this year, on April 2. The new measure raises the prospect of further duties as the U.S. Trade Representative’s office begins a formal probe into what the Trump administration views as Brazil’s “unfair trade practices.”
Brazil ranks as the United States’ 15th largest trading partner, with total bilateral trade reaching $92 billion in 2024, and a rare U.S. trade surplus of $7.4 billion. Despite this, Trump’s letter echoed language used in recent tariff notifications, describing Brazil’s trading relationship as “very unfair.”
The action against Brazil comes amid a flurry of tariff announcements from the Trump administration. In recent days, the former president has issued letters to 14 countries, including major U.S. suppliers like South Korea and Japan, both of which face 25% tariffs starting August 1 unless trade agreements are reached beforehand.
Trump also announced new duties on copper imports and signaled upcoming levies on semiconductors and pharmaceuticals. Earlier this week, he set tariffs of 20% on Philippine exports and 30% on goods from Sri Lanka, Algeria, Iraq, and Libya. Brunei and Moldova were each hit with 25% tariffs. These nations together accounted for under $15 billion in U.S. imports in 2024.
Despite the sweeping trade actions, Trump said negotiations with China and the European Union were progressing. “They treated us very badly until recently, and now they’re treating us very nicely. It’s like a different world, actually,” Trump told reporters, suggesting the EU might soon receive its own tariff rate.
EU trade chief Maros Sefcovic confirmed that talks on a framework trade agreement were advancing, saying a deal could be finalized within days following the extension of the U.S. deadline to August 1.
However, Italian Economy Minister Giancarlo Giorgetti cautioned that the discussions remained “very complicated” and could stretch until the final hours before the deadline.
Behind the scenes, EU officials and automotive industry representatives said negotiations include options such as tariff cuts, import quotas, and trade credits aimed at protecting European automakers.
The U.S. stock market appeared unfazed by Wednesday’s developments, while the Japanese yen dipped following the tariff hike against Japan. According to Yale Budget Lab, the effective U.S. tariff rate has now climbed to 17.6%, the highest in nearly 90 years, up from 15.8%.
The Trump administration has highlighted these tariffs as a critical revenue stream. Treasury Secretary Scott Bessent said the U.S. has already collected around $100 billion in tariff revenue this year and expects to reach $300 billion by year’s end.
Trump has pledged “90 deals in 90 days” following the rollout of country-specific duties in April. So far, only two trade agreements have been concluded — with the United Kingdom and Vietnam, while a third with India is reportedly near completion.
Massachusetts Governor Maura Healey, a Democrat, criticized Trump’s strategy, saying, “President Trump was elected to lower costs, and all he is doing is raising prices and hurting our businesses.”
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
- EDGARDO HERNAL
- EDGARDO HERNAL
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