U.S. imposes 50% customs duties on imports from Brazil
In a developing diplomatic row, former Brazilian President Jair Bolsonaro finds himself at the centre of a political storm, with the US government condemning his trial as unjust and politically motivated. Bolsonaro, who served as President from 2019 to 2023, is currently under house arrest, facing charges of plotting a coup to overturn the 2022 election results.
The US administration views Brazil’s judicial actions as undermining democratic governance and threatening economic interests. As a result, it has imposed tariffs on Brazilian imports, impacting Brazilian exports to the US. The new tariff rate is five times the previous rate of 10%, with US import tariffs of 50% now in effect.
The US government, under the leadership of President Donald Trump, argues that these tariffs are a means to pressure Brazil amid the political turmoil related to Bolsonaro's trial. Trump has demanded that the Supreme Court in Brasilia drop the coup case against Bolsonaro, a move that has further strained US-Brazil trade relations.
Brazilian President Luiz Inácio Lula da Silva has spoken out against these tariffs, labelling them as "blackmail." In response, he has announced countermeasures to the increased US tariffs. Some Brazilian products, such as aircraft and orange juice, are exempt from the increased tariffs.
Bolsonaro, who denies the charges against him, sees himself as a victim of political persecution. The prosecution argues that Bolsonaro's coup attempt failed because the military did not support him. If found guilty, Bolsonaro faces up to 40 years in prison for his actions.
The trial has been a contentious issue, with Bolsonaro's supporters claiming it to be a political witch hunt. The situation has escalated into a diplomatic row affecting trade relations, with the US government sanctioning Brazilian justices involved in Bolsonaro's trial.
This trade and diplomatic conflict remains ongoing and tied closely to the developments in Bolsonaro’s legal proceedings and broader US concerns about Brazil’s rule of law and political stability. The tariffs took effect at midnight (local time; 06:00 CET) on Wednesday, and the trial is expected to conclude by the end of 2025.
- The ongoing dispute, initiated by increased US import tariffs on Brazilian goods, is closely linked to the trial of former Brazilian President Jair Bolsonaro, as the US government views Brazil's judicial actions as a threat to democratic governance and economic interests.
- The diplomatic row between the US and Brazil, centered around Bolsonaro's trial, has expanded to include the US government sanctioning Brazilian justices involved in the case, escalating the tensions and affecting trade relations, with both nations implementing countermeasures.
