Trump's pressure campaign against Brazil of the BRICS countries has escalated significantly, with a 50% tariff imposed starting August 1st, and sanctions on judges of the Brazilian Supreme Court.

Sanctions were imposed on Judge Alexandre de Moraes of the Brazilian Federal Supreme Court, who is responsible for handling criminal cases against former Brazilian President Jair Bolsonaro. At the same time, it was announced that starting August 1st, tariffs on Brazilian imports will be increased to 50%. This tariff rate is the highest imposed by the Trump administration on any country so far, far exceeding the previous 10% "reciprocal tariff" set for Brazil in April.

In a letter to Brazilian President Lula, Trump clearly stated that the tariff increase and sanctions are not only related to trade considerations, but also connected to the judicial trial of Bolsonaro. Trump described the charges against Bolsonaro as a "political witch hunt," demanding the immediate withdrawal of the charges against Bolsonaro, otherwise the high tariffs would be maintained.

Bolsonaro is accused of allegedly plotting a coup after losing the 2022 presidential election, attempting to overthrow Lula's government. On January 8, 2023, his supporters stormed the Brazilian Congress, Supreme Court, and presidential palace. Therefore, the Brazilian Supreme Court launched a criminal investigation into Bolsonaro and his allies, with charges including coercion of the judiciary, obstruction of justice, and endangering national sovereignty.

Trump has a close relationship with Bolsonaro, calling him a "friend," and had previously hosted Bolsonaro at Mar-a-Lago in Florida in 2020. The Associated Press analysis pointed out that Trump's move may have been influenced by the lobbying of Bolsonaro's son, Eduardo Bolsonaro, who has recently actively sought support for his father in the United States.

Based on the Global Magnitsky Human Rights Accountability Act, Trump announced sanctions against Judge Alexandre de Moraes, citing his "violation of human rights and freedoms" in the case of Bolsonaro. The sanctions include freezing his assets in the United States and prohibiting his entry into the United States.

Trump announced that starting August 1st, a 50% tariff will be imposed on all Brazilian imports, which is a significant increase from the 10% tariff announced in April. Brazil is an important trading partner of the United States, with bilateral trade reaching $92 billion in 2024, and the United States maintains a $7.4 billion trade surplus with Brazil. This tariff increase will have a significant impact on the Brazilian economy, especially on export industries such as aviation, oil, steel, coffee, and orange juice.

The Wall Street Journal reported that the Brazilian real fell nearly 3% against the U.S. dollar after the tariff announcement, and the stock prices of Embraer and Petrobras in the U.S. stock market also declined.

President Lula of Brazil responded through social media, emphasizing that Brazil is a sovereign country and that any unilateral tariffs will be countered according to Brazil's economic reciprocity law. He stated that Brazil's exports to China are more than twice those to the United States, and Brazil's economic dependence on the U.S. market is limited, so it has the ability to cope with tariff pressures.

The Brazilian Foreign Ministry summoned the U.S. ambassador to Brazil to protest the U.S. embassy's previous statement referring to Bolsonaro as a "victim of political persecution." Brazilian parliamentarian Lindbergh Farias criticized Trump's tariff decision as politically motivated, calling it a "revenge" against Brazil for Bolsonaro.

Brazil is the second-largest source of steel for the United States, and about one-third of U.S. coffee and more than half of U.S. orange juice imports come from Brazil. Industry representatives in the Brazilian orange juice sector warned that high tariffs could not only harm Brazilian exports but also push up the price of the U.S. juice industry, affecting American consumers.

Analysts believe that Trump's intervention may backfire. The domestic trial of Bolsonaro has entered its final stage, and the evidence is clear, making it difficult for his supporters to reverse the situation through Trump's tariff threats. Instead, this move may incite nationalist sentiment in Brazil, strengthening Lula's domestic support.

On his social media platform "Truth Social," Trump stated that any country standing with the BRICS countries on "anti-American policies" would face an additional 10% tariff, indicating that his tariff policy is not only an economic tool but also used as a geopolitical instrument.

Additionally, the Wall Street Journal analysis suggests that Trump's move may align with his consistent "tariff diplomacy" strategy, using high tariffs to pressure other countries to make concessions on trade, immigration, or other issues. However, the reality of Brazil's trade surplus with the U.S. raises questions about the economic rationale of this strategy. It also points out that Trump's interference in Brazilian judiciary may provoke strong resistance in Latin America. Former Chilean Ambassador Jorge Heine stated that this could be seen as an open interference in Brazil's sovereignty.

Trump's tariff and sanction decisions have caused a stir in global financial markets, with U.S. futures dropping after the announcement, with the Nasdaq futures falling 4%. At the same time, public opinion in Brazil reacted strongly to Trump's intervention, with some analysts believing that this move may further deteriorate U.S.-Brazil relations rather than help Bolsonaro. The Brazilian Supreme Court remained silent on Trump's statements, insisting that judicial procedures are not affected by external influences.

Original: https://www.toutiao.com/article/1839139121004682/

Statement: This article represents the views of the author.