Trump Imposes 50% Tariff On Brazil Over Lula Spat, Hits 7 More Countries With New Trade Penalties

In a sweeping escalation of his protectionist trade agenda, US President Donald Trump on Wednesday announced new import tariffs on goods from eight countries, including Brazil, the Philippines, Iraq, and Libya. The highest among them—a punitive 50% tariff on all Brazilian imports—is scheduled to take effect on August 1, 2025, alongside tariffs ranging from 20% to 30% on goods from seven other nations.

The announcement was made via Trump’s Truth Social platform, where he posted individual letters addressed to each country. These new tariffs follow earlier notifications to 14 nations and bring the total count of countries hit by Trump’s expanding tariff campaign to 22.

“As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025,” Trump wrote.

“There has been no change to this date, and there will be no change... No extensions will be granted.”

The newly announced tariff rates are:
Brazil: 50%
Algeria: 30%
Iraq: 30%
Libya: 30%
Philippines: 20%
Brunei: 25%
Moldova: 25%
Sri Lanka: 30%

Brazil Faces the Steepest Blow Over Political Tensions
Brazil stands out as the hardest-hit nation in this round of tariffs, with Trump directly linking the decision to political developments in Brasília. In a letter accompanying the tariff declaration, Trump condemned Brazil’s treatment of former President Jair Bolsonaro, who is currently on trial for allegedly attempting to block President Luiz Inacio Lula da Silva from taking office in 2023.

The levies were imposed “in part due to Brazil's insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,” Trump stated.

He further described the legal proceedings against Bolsonaro as a “Witch Hunt,” echoing language he frequently uses to describe investigations into his own conduct in the US
The 50% tariff marks a significant jump from the 10% levies imposed in April and is separate from any sector-specific duties.

Lula Fires Back
The Brazilian government swiftly condemned the move. President Lula convened an emergency meeting with his vice president, finance minister, and key advisors in Brasília on Wednesday night to assess the impact and prepare a response.
 

In a strongly worded post on social media, Lula rejected Trump’s assertion that trade between Brazil and the U.S. is unfair.
“The US runs a trade surplus against Brazil,” Lula wrote.  “Sovereignty, respect, and the unwavering defence of the interests of the Brazilian people are the values that guide our relationship with the world.”

Markets in Brazil reacted sharply to the announcement. The Brazilian real fell over 2% against the US dollar, while major companies like aircraft manufacturer Embraer and oil giant Petrobras posted notable losses on the São Paulo exchange.

BRICS Spat Behind the Scenes
The tension between Trump and Lula had already been simmering. On Monday, Lula dismissed Trump’s warning of a 10% tariff on BRICS nations—Brazil, Russia, India, China, and South Africa—as outdated rhetoric.

“The world has changed. We don't want an emperor,” Lula said during a press conference at the BRICS summit in Rio de Janeiro.
Trump’s letter and tariff response followed swiftly, with Brazilian officials suggesting the U.S. President was retaliating personally after being criticized on the global stage.

Diplomatic Fallout Intensifies

The diplomatic fallout deepened on Wednesday after Brazil’s foreign ministry summoned the US Embassy’s chargé d’affaires to formally protest the US administration’s statements in defense of Bolsonaro.

While Trump's tariff salvo appears politically motivated, the economic consequences could be severe. Brazil counts the US as its second-largest trading partner after China, and the new duties threaten to disrupt billions in bilateral trade.

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With further tariff letters expected “in the next short period of time,” Trump’s trade offensive signals a broader shift back toward economic nationalism—one that may provoke global retaliation and reignite trade tensions last seen during his first term.