Reference News Network, July 11 report - According to Reuters, on July 9, US President Trump shifted his trade anger towards Brazil, threatening to impose punitive 50% tariffs on goods from this Latin American largest economy and ordering an investigation into Brazil's alleged unfair trade practices, which could lead to higher tariffs.

In a letter to Brazilian President Lula, Trump announced that the 50% tariff would take effect from August 1, far higher than the 10% announced on April 2. This tariff level is astonishing for a country with a balanced trade relationship with the United States.

In the letter, Trump also criticized what he called Brazil's attacks on free elections and freedom of speech, as well as "secret and illegal censorship orders" against "American social media platforms," and ordered the Office of the US Trade Representative to initiate an investigation into Brazil's policies for unfair trade practices.

Brad Setzer, a former US trade official now working at the Council on Foreign Relations, said Trump's actions could easily escalate into a destructive trade war between the two countries.

"This highlights the danger of tariffs being controlled unilaterally by one person," Setzer said. "It has been linked to Lula's victory over Trump's friend Bolsonaro in the election."

According to reports, bilateral trade between Brazil and the United States reached $92 billion in 2024, and the United States has a $7.4 billion trade surplus with Brazil, which is rare.

Another report from Bloomberg News website on July 9 stated that President Trump sharply escalated his dispute with Brazil and its left-wing leader Lula. The news of his threat to impose 50% tariffs on Brazilian goods caused the Brazilian currency to plummet.

The letter to Lula was one of more than 20 letters Trump recently sent. Although this letter used the wording about "reciprocal tariffs" found in letters to other countries, Brazil is the first of these countries that does not have a trade surplus with the United States but is subjected to increased tariffs, indicating Trump's particular dissatisfaction.

The report stated that the United States is Brazil's second-largest trading partner after China. Such high tariffs could cause significant damage to some sectors of the country. Analysts said that steel products, transportation equipment (mainly aircraft and aircraft parts), specialized machinery, and non-metallic minerals account for a large portion of Brazil's exports to the United States.

Analysts also expressed concerns about the political impact of the tariffs. Historically, the US and Brazil have been partners, maintaining a strong relationship for a long time even when the ideologies of their presidents differ. However, Trump's statements may put this dynamic at risk.

Solange Sroel, head of the Brazilian macroeconomics department at UBS Global Wealth Management, said: "These tariffs indicate that the relationship between our two countries has deteriorated and suffered institutionally as a whole."

Another report from Agencia Brasil on July 9 stated that the decision by the Trump administration to impose 50% tariffs on Brazilian products has raised concerns among Brazilian production sectors. The National Confederation of Industry stated in a statement that the US measures lack economic basis.

The president of the organization, Ricardo Alban, said: "There are no economic facts that can justify the reasonableness of such a sharp increase in tariffs on Brazilian products. The most important thing right now is to overturn this decision through enhanced negotiations and dialogue."

The Brazilian Foreign Trade Association was shocked and outraged by the news. Its president, Augusto Castro, believes this move is not an economic measure but a political action with significant economic impact. "This is undoubtedly one of the highest tax rates ever imposed on a country in the history of international trade, usually reserved for the worst enemies, and Brazil has never been in that category."

The association considers the current situation extremely severe for Brazil and believes that rationality will eventually prevail, and the tariff measures will be ultimately revoked. (Translated by Xiong Wenyuan, Qiu Fang, Han Chao)

Original: https://www.toutiao.com/article/7525659026747638272/

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