The United States announced the implementation of an additional 40% tariff on products coming from Brazil, raising the total tariff to 50%, to “address recent policies” of the government of Luiz Inácio Lula da Silva, especially the processing “for political reasons” of former Brazilian president Jair Bolsonaro, an ally of Donald Trump.
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The decision is a response to Brazilian government policies that, as argued by the White House in a statement, constitute an unusual and extraordinary threat to national security, foreign policy, and the economy of the United States.
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Why does Trump have a personal conflict with Brazil?
Donald Trump had threatened on July 9 to increase tariffs on Brazilian imports up to 50%, a measure that was supposed to take effect this Friday, August 1st.
In the executive order signed by Trump, it also declares “a new national emergency” to establish said tariff due to the harm suffered by American companies, the freedom of expression rights of American individuals, and the economy of this country from actions coming from Brazil.
Regarding the trial of Bolsonaro, the White House considers that “persecution, intimidation, harassment, censorship, and prosecution for political reasons” by the Brazilian government of the far-right former president and thousands of his supporters “are serious human rights abuses that have undermined the rule of law in Brazil.”
However, essential products for the United States such as commercial airplanes, energy products, and orange juice are excluded from the 50% tariff, but it will affect coffee, fruits, meats, and 691 other products.
What was Brazil’s reaction?
The Brazilian government was hopeful of easing the tariff burden after weeks of negotiations and had stated that there were “signs” of opening dialogue with the United States. In an interview with CNN Brazil, Finance Minister Fernando Haddad stated that the “channels are starting to unlock.”
Due to Bolsonaro’s impeachment, accused of attempting a coup d’état, the Trump Administration announced on July 18 the revocation of visas belonging to Judge Alexandre de Moraes, in charge of the judicial process, and his immediate family members. This Wednesday, the White House also imposed sanctions against Moraes for “using his position to authorize arbitrary pre-trial detentions and suppress freedom of expression.”
In a recent interview with the New York Times, Lula took a tough stance against Trump and said, “if he wants a political fight, let’s treat it as such. If he wants to talk about trade, let’s sit down and talk about trade. But we can’t mix everything together” and added that “at no point will Brazil negotiate as if it were a small country against a large one. Brazil will negotiate as a sovereign country.”