Brazil’s imports into the United States have been threatened with a 50% tariff by US President Donald Trump.
Donald Trump has a habit of threatening tariffs, but it appears that this issue is bigger than just a matter of trade.
Trump’s most recent threat has shocked the global market and many are left wondering why he is so aggressive.
Donald Trump wrote on Truth Social that the tariffs would be implemented on 1 August in part as a response to Brazil’s “underhanded attacks against free elections and core rights to free speech of Americans.”
Why is Donald Trump angry with Brazil?
Donald Trump’s decision appears to be rooted in the strong support he has given Jair Bolsonaro – a former Brazilian President and longtime political ally.
Bolsonaro faces trial for allegedly trying to reverse the results of Brazil’s elections in 2022.
Trump didn’t hold back in his criticism of the “witch-hunt” trial and the “international scandal.” He urged Brazil to drop all charges, and portrayed the case as an attack by a conservative on another conservative.
Trump’s threat to increase tariffs is seen by many as an attempt to show the US’s economic might in order for it influence Brazil’s internal politics.
In slapping Brazil so hard, Obama is making clear that, to him, an ally was being unfairly treated.
This is a radical departure from the usual diplomatic practices, which keep trade and cases in foreign courts separate.
Brazil’s controversial legislation
Donald Trump’s anger is not limited to Bolsonaro. Trump has also made a point of criticizing Brazil’s treatment towards American tech firms.
Brazil recently proposed a tax on digital services and has issued court orders to major US social media sites. Trump views these actions as unfair and censorship of digital trade.
He claims that such actions stifle freedom of expression and disadvantage American business overseas.
Trump wants to take things even further by pointing out what he calls an “unfair relationship” between the US and Brazil. He claims that trade deficits are causing US to lose money.
The numbers do not support him, as the US has a surplus in goods and services with Brazil.
The gap between his rhetoric and facts may indicate that the threat of tariffs is more about politics than actual economic complaints.
Brazil did not waste time in retaliating. Luiz inacio Lula da slammed it as an overstep and an intrusion on Brazil’s sovereignty.
He said that Brazil would respond in the same way if the US imposed tariffs.
Brazil has already escalated diplomatic tensions by recalling their ambassador to Washington, and calling the US representative in Brasilia for a protest.
The post This is why Donald Trump’s tariff threat of 50% against Brazil doesn’t only concern trade could be updated as new developments unfold.
