Trump imposes 50% levy on Brazil

BRASILIA — US President Donald Trump said on Wednesday that his administration would impose a 50 percent tariff on all imports from Brazil after a spat this week with his Brazilian counterpart.

Brazil's President Luiz Inacio Lula da Silva fired back on Wednesday, saying new tariffs would be met with reciprocal measures.

In a letter, Trump linked the tariffs to Brazil's treatment of former president Jair Bolsonaro, who is on trial over charges of plotting a coup to stop Lula from taking office in 2023.

Lula, his vice-president, his finance minister, and others held an emergency meeting in Brasilia on Wednesday night to discuss the new levies.

In a lengthy post on social media after the meeting, Lula said Trump's accusations that trade between the two countries was unfair to the US were false, stressing the US runs a trade surplus against Brazil.

"Sovereignty, respect, and the unwavering defense of the interests of the Brazilian people are the values that guide our relationship with the world," Lula wrote.

The US is Brazil's second-largest trading partner after China and the tariffs are a major increase from the 10 percent announced in April. Trump's letter said the 50 percent tariff will start on Aug 1 and will be separate from all sectoral tariffs.

Tensions between the US and Brazil had already intensified on Wednesday after Brazil's foreign ministry summoned the US embassy charge d'affaires over a statement defending Bolsonaro.

Trump said in a social media post on Monday that Bolsonaro was the victim of a "witch hunt", a term he used for cases he himself faced in the US after the end of his first term in office. The US embassy in Brasilia issued a statement on Wednesday to the local press echoing his remarks.

Interference condemned

Lula on Monday condemned foreign interference in Brazil's domestic affairs.

"Defending Brazil's democracy is an issue that concerns Brazilians. We are a sovereign country; we do not accept interference or guardianship from anyone. We have solid and independent institutions. No one is above the law, especially those who threaten freedom and the rule of law," Lula said.

In his post on Wednesday, Lula rebuffed Trump's accusations of a witch hunt and said the case against Bolsonaro was up for the courts to decide and not subject to any "threats that could compromise the independence of national institutions".

"It is important to emphasize: Brazil is a sovereign country with independent institutions that will not accept being tutored by anyone," Lula said on X.

The tariffs on Brazil could have a significant impact on food and beverage prices in the United States. Around a third of coffee consumed in the US, the world's largest consumer of the beverage, comes from Brazil — which is the world's largest coffee grower.

More than half of the orange juice sold in the US comes from Brazil, which has an 80 percent share of the juice's global trade. The South American agricultural powerhouse also sells sugar, beef and ethanol to the US, among other products.

"This measure impacts not only Brazil, but the whole US juice industry that employs thousands of people and has had Brazil as its main supplier for decades," said Ibiapaba Netto, the executive director of Brazilian orange juice industry group CitrusBR.

Agencies - Xinhua