Tensions are flaring between the United States and Brazil following President Donald Trump’s threats of sweeping 50% tariffs on imports from the South American nation.
What Happened: On Wednesday, Trump wrote a letter telling Brazilian President Luiz Inácio Lula da Silva that the trial of former President Jair Bolsonaro was “a Witch Hunt that should end IMMEDIATELY,” while accusing the nation of “insidious attacks on Free Elections,” which prompted the punitive trade measure.
The letter further accused Brazil's Supreme Court of issuing “hundreds of SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms,” threatening free speech and violating trade norms.
Trump also argues that Brazil's trade practices have resulted in “unsustainable Trade Deficits against the United States,” calling it a major threat to the economy, as well as national security.
As a result, Trump says in the letter that, effective August 1, all Brazilian goods would face a 50% tariff, with additional duties on goods routed through third countries. He also ordered the U.S. Trade Representative to launch a Section 301 investigation into Brazil's digital trade practices and market access barriers.
Screenshot from Donald Trump’s Truth Social Account
Lula has since pushed back, stating that his country “will not accept any form of tutelage” and defended the ongoing legal proceedings against Bolsonaro as a matter of judicial sovereignty.
Defending Brazil's regulatory actions, Lula says that “Brazilian society rejects hateful content, racism, child pornography, scams, fraud, and speeches against human rights and democratic freedom.” He also adds that “freedom of expression must not be confused with aggression or violent practices.”
He also challenged Trump’s claims on trade, stating that “Statistics from the U.S. government itself show a surplus of $410 billion in the trade of goods and services with Brazil over the past 15 years.” He says, any unilateral tariff hikes “will be addressed in accordance with Brazil's Economic Reciprocity Law.”
Lula concluded by establishing “sovereignty, respect, and the unwavering defense of the interests of the Brazilian people” as what guides his nation’s relationship with the world.
Why It Matters: This comes just days after Trump threatened an “additional 10% tariff” on any country that aligns itself with the BRICS, an intergovernmental organization of which Brazil is one of the founding members.
Former Trump ally, Elon Musk and his social media platform, X, have repeatedly tangled with Brazil’s top court in recent years. Last year, a judge called for an outright ban on X, threatening daily fines for anyone who tried to circumvent the order.
The court then gave Musk 24 hours to appoint a legal representative in Brazil or face a nationwide suspension of X, following the latter’s defiance of an earlier court order.
Early this year, X was hit by a $1.42 million fine by the nation’s Supreme Court for not complying with judicial orders, by Justice Alexandre de Moraes, who Musk had labelled a “dictator.”
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