Trump attacks Brazil with 50% tariffs, citing Bolsonaro ‘Witch Hunt’ trial – state
U.S. President Donald Trump on Wednesday picked out Brazil’s import tax 50% to treat its former president, Jair Bolsonaro, a sign that personal grudges rather than simple economics are driving U.S. leaders’ use of import taxes.
Trump avoided standard form letters with Brazil, notably kidnapped his tariffs with Bolsenro’s trial, accused of trying to overturn his 2022 election losses. Trump described Bolsenro as a friend and hosted the former Brazilian president at his Margrago resort in 2020.
“This trial should not be done,” Trump wrote in a letter about the truth socialization. “This is a witch hunt that should end immediately!”
Trump also opposed Brazil’s Supreme Court fines on social media companies such as X, saying last year’s temporary lockdown constituted a “secret and illegal censorship order.”
Trump said he is conducting an investigation under the results of Section 301 of the Trade Act of 1974, which applies to companies with unfair trading practices to U.S. companies.
The Brazilian letter reminds people that political and personal relationships with Trump are as important as any economic fundamentals. Although Trump said the high tariff rates he set were based on trade imbalances, his Wednesday action is unclear how the targeted countries will help re-enact the United States.
Trump also sent letters to leaders of seven other countries on Wednesday. Neither of them are the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka – they are major industrial competitors in the United States.
Most economic analysis suggests that tariffs will increase inflationary pressures and subtract from economic growth, but Trump has used taxation as a way to argue for U.S. diplomatic and financial power over its competitors and allies. His administration promises import taxes will reduce trade imbalances, offset some of the tax cuts he signed into law on Friday and result in factory jobs returning to the U.S.
Trump spoke with trade as a diplomatic tool at a White House meeting with African leaders. Trade “seems to be the basis for his settlement of disputes between India and Pakistan and Kosovo and Serbia”, he said.
“You guys want to fight, we won’t trade,” Trump said. “And we seem to be very successful.”
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On Monday, Trump’s tariffs on Serbia were raised by 35%, one of the countries he used to promote how trade leads to peace.
Trump said the tariff rates in his letter were based on “common sense” and trade imbalances, although the Brazilian letter stated otherwise. Trump advised that he had not considered the countries that leaders met with him in the Oval Office (Liberia, Senegal, Gabon, Mauritania and Guinea-Peso) for “these are my friends now”.
He said the state has not complained about the interest rates outlined in his letter, although the tariffs are close to the tax rates announced in the financial markets announced on April 2. The S&P 500 rose slightly in trading Wednesday afternoon.
“We really don’t complain too much because I keep them at very low numbers, which is what you’re saying is very conservative.”
EU officials, the EU’s main trading partner and a source of Trump’s anger over trade, said Tuesday they did not want to hear from Trump’s listing tariffs. The Republican president began announcing tariffs on Monday, with import taxes of 25% through attacks with two major trading partners, Japan and South Korea.
According to a letter from Trump, imports from Libya, Iraq, Algeria and Sri Lanka will be taxed at 30%, import rates for Moldova and Brunei will be 25%, and the Philippines will be taxed at 20%. Tariffs will begin on August 1.
The Census Bureau reported that last year, the US dollar of goods was unbalanced with Algeria, US$5.9 billion in Iraq, US$5.9 billion in Iraq, US$900 million in Libya, US$4.9 billion in the Philippines, US$4.9 billion in the Philippines, US$2.6 billion in Sri Lanka, US$111 million, US$111 million, Brenni and US$85 million in use with Moldova. The imbalance represents the difference between the differences between what the United States exports to these countries and imports.
To sum up, the trade imbalance with these seven countries is essentially a complete mistake in the US economy, with a GDP of $300 trillion.
The letters published information about Truth Social after the expiration of the 90-day negotiation period, with a baseline tax of 10%. Trump has given countries more time to negotiate with his August 1 deadline, but he insists that countries receiving the letters will not be extended.
Maros Sefcovic, the EU’s chief trade negotiator, told EU lawmakers in Strasbourg on Wednesday that the EU was not conducive to the tariff increase contained in the letters sent by Trump and extended the negotiations until August 1, “will provide “extra room to reach satisfactory conclusions.”
Trump proposed a 20% tariff on EU goods on April 2, and then threatened that it would raise it to 50% after negotiations, but not as fast as he hoped, and could only return a 10% benchmark. The EU has 27 member states, including France, Germany, Italy and Spain.
The tariff letters are positively worded in the way Trump writes. He saw tariffs as an invitation to “participate in the extraordinary American economy”, adding that trade imbalances are a “main threat” to the U.S. economy and national security.
The president threatens additional tariffs in any country attempting to retaliate. He said he chose to send letters because it was too complicated for U.S. officials to negotiate with their peers with new tariff countries. Brokerage trade agreements can take years.
Prime Minister Shigeru Ishiba interpreted the August 1 deadline as a delay so that more time to negotiate, although he informed in his remarks that the tariffs would harm the family industry and employment in his country.
Malaysia’s trade minister Zafrul Aziz said on Wednesday that his country would not meet all U.S. requirements after Trump’s letter imposed a 25% tariff on his goods. Aziz said U.S. officials are seeking changes in government procurement, halal certification, medical standards and digital taxes. Aziz said that was the red line.
Secretary of State Marco Rubio is scheduled to arrive in Kuala Lumpur, the capital of Malaysia, on Thursday.
