Brazil's 50% Tariff: President Lula Slams Trump for "Interfering in National Sovereignty" | WPN World People News

On July 9, 2025, former U.S. President Donald Trump sent a letter to Brazilian President Luiz Inácio Lula da Silva, announcing that starting August 1, the U.S. would impose up to 50% “reciprocal tariffs” on Brazilian goods. This represents the highest tariff rate among the 22 countries currently facing U.S. trade pressure.

Trump claimed the move was in response to Brazil’s legal actions against former President Jair Bolsonaro, denouncing them as a political “witch hunt.” He described Bolsonaro as a U.S. ally who deserves support. Trump added that he is open to negotiations, but “not at this time.”

President Lula strongly criticized the measure, calling it a serious interference in Brazil’s judicial sovereignty. He announced that Brazil would invoke its Economic Reciprocity Law to impose retaliatory tariffs of the same 50% rate on U.S. products. Lula emphasized that “respect must be mutual,” warning that if Trump escalates the tariffs, Brazil will take further countermeasures accordingly. His administration also stated it may suspend parts of trade agreements, limit intellectual property protections, or pursue action through the WTO to defend national interests.

Numerous international media outlets pointed out that the U.S. decision is primarily politically motivated, particularly as the U.S. runs a trade surplus with Brazil — estimated at $4.2 to $7.4 billion in 2024. The Brazilian market reacted immediately, with prices rising on key exports like coffee beans and orange juice. Given Brazil’s dominant role in global coffee production, the move is expected to disrupt U.S. inventory levels.

Economists warn that if the tariffs take effect as planned, they could spark a bilateral trade war, slow economic growth, fuel inflation, and lead to legal complications in trade processes. Nevertheless, the U.S. market remains stable for now, as investors widely expect Trump may revise or walk back parts of the threat, and that not all measures will be implemented in full.