U.S. President Donald Trump has sparked a major diplomatic and trade standoff after threatening to impose a 50% tariff on Brazilian imports unless President Luiz Inácio Lula da Silva halts the ongoing trial against former President Jair Bolsonaro, calling it a “witch hunt.”
In a letter sent directly to Lula and shared on Trump’s Truth Social platform, Trump accused the Brazilian leader of weaponizing the justice system against Bolsonaro, a far-right ally of Trump’s who faces charges related to an alleged plot to overturn the results of the 2022 election.
“This Witch Hunt should end IMMEDIATELY!” Trump wrote, warning that unless the prosecution is dropped, the U.S. would levy punitive tariffs on Brazilian goods starting August 1.
The Brazilian government swiftly rejected Trump’s interference. In a strongly worded response on X, President Lula stated, “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage. Any unilateral tariff increase will be met with reciprocal measures under Brazil’s Law of Economic Reciprocity.”
This is the first time since Trump resumed issuing tariff threats earlier this year that a country has vowed to retaliate with matching trade measures. Brazil, which ran a $6.8 billion trade deficit with the U.S. in 2024, is a major buyer of American aircraft, fuel, and industrial machinery all of which could be targeted by Brazilian counter-tariffs.
Trump’s warning to Brazil comes amid a broader effort to pressure foreign governments through aggressive trade tactics. Since April, he has pushed a “reciprocal tariffs” agenda, targeting countries with significant trade surpluses over the U.S. In the past week alone, Trump has sent similar tariff warning letters to 22 countries, including the Philippines, Algeria, Sri Lanka, and Iraq with rates ranging from 10% to 50%.
However, his tone toward Brazil was markedly more political than economic. While most letters cited trade imbalances, the letter to Lula directly linked the tariffs to Bolsonaro’s prosecution. Bolsonaro, often dubbed the “Trump of the Tropics,” is on trial for allegedly leading a conspiracy to stage a coup and potentially assassinate Lula after losing the 2022 election. He has denied all charges.
Trump offered a way out for Brazil and other nations: relocate manufacturing to the U.S. “There will be no Tariff if Brazil, or companies within your Country, decide to build or manufacture product within the United States,” Trump wrote a condition also included in letters to other governments this week.
The tariff threat comes as global markets brace for escalating protectionist policies. Economists at JPMorgan described the Brazil move as “most surprising,” adding in a note, “It is possible these tariffs will never be implemented, as some in the market are hoping for.”
Adding to the tension, Trump also announced a sweeping 50% tariff on copper imports late Wednesday, citing national security risks. Copper, essential for everything from semiconductors to defense systems, has seen prices surge. On Tuesday, copper futures jumped 13.1%, the largest single-day increase since 1968.
“Copper is the second most used material by the Department of Defense,” Trump declared. “This 50% TARIFF will reverse the Biden Administration’s thoughtless behavior.”
Analysts remain skeptical about whether the tariffs will meaningfully revive U.S. copper production. “The U.S. remains structurally short on copper,” said Saxo Bank strategist Ole Hansen, warning that “a tariff-induced price premium risks making U.S. manufacturing materially more expensive.”
As the August 1 deadline looms, the global economic impact of Trump’s tariffs and the political fallout from his intervention in Brazil’s internal affairs could shape international trade relationships for months to come.
Written By Ian Maleve
