News Brief

After BRICS Summit, Trump Hits Brazil With 50 Per Cent Tariff Over Bolsonaro Trial, Lula Vows To Retaliate

Kuldeep NegiJul 10, 2025, 08:36 AM | Updated 08:36 AM IST
US President Donald Trump (File Photo)

US President Donald Trump (File Photo)


Tensions flared between Brazil and the United States on Wednesday (9 July) as US President Donald Trump announced a 50 percent tariff on Brazilian steel imports, citing his support for former president Jair Bolsonaro, who faces coup-related charges in the South American country, NDTV reported.

Brazilian President Luiz Inacio Lula da Silva condemned the move and warned that Brazil would respond in kind under its Law of Economic Reciprocity.

Trump has denounced the ongoing trial of Bolsonaro, his right-wing ally in Brazil, calling it politically motivated.

Bolsonaro is accused of conspiring to stay in office after his 2022 defeat to Lula.

On Wednesday, Brasilia summoned Washington's top envoy to the country over an embassy statement describing Bolsonaro as a victim of "political persecution", mirroring Trump’s rhetoric of a “witch hunt" against the 70-year-old Brazilian leader.

Trump then announced he would slap a 50 percent tariff on Brazilian imports starting 1 August, citing "Brazil's insidious attacks on Free Elections" and warned of further escalation if the country retaliates.

In a letter to Lula, Trump called Bolsonaro’s prosecution “an international disgrace,” arguing that it “should not be taking place".

Trump added that the US would start a probe into Brazil's trade practices.

While Trump has been issuing letters to trading partners — focusing on those his country runs a trade deficit with — Brazil had until now not been among those threatened with higher duties from 1 August.

The latest tariff announcement by Trump comes just days after Brazil hosted the BRICS Summit.

During this week’s BRICS summit hosted by Lula, member nations criticised Trump’s tariff actions and recent military operations in Iran.

In retaliation, Trump threatened an additional 10 percent tariff on all BRICS-aligned countries.

Brazil, which exported four million tons of steel to the US last year, is America's second-largest steel supplier after Canada.

Earlier this week, Trump stirred controversy by demanding Brazilian authorities “LEAVE BOLSONARO ALONE,” accusing them of relentless political targeting.

Lula dismissed Trump’s remarks as undue interference, asserting firmly that “no one is above the law” in Brazil.

Bolsonaro has rejected allegations of plotting a coup, though prosecutors claim the plan collapsed due to insufficient support from the military.

In early 2023, Bolsonaro supporters stormed government buildings demanding military intervention to remove Lula. Bolsonaro was abroad during the chaos.

The Bolsonaro trial has drawn parallels to Trump’s own legal troubles over the 6 January US Capitol riot, both seen as efforts to overturn electoral defeats.

Trump denied wrongdoing, and the case was abandoned after his reelection returned him to the White House.

The Trump and Bolsonaro families have since strengthened ties, with Bolsonaro’s sons reportedly urging US sanctions on a Brazilian Supreme Court judge handling the trial.

Trump also claimed Bolsonaro would be the front-runner in Brazil’s next election—despite a court-imposed ban barring him from running for spreading disinformation about Brazil's voting system.

Bolsonaro publicly thanked Trump, applauding his defence of "peace, justice, and liberty” in an online message.

The US embassy in Brasilia reaffirmed Trump’s backing of Bolsonaro, who faces a potential 40-year sentence if convicted.

“Jair Bolsonaro and his family have been strong partners of the United States,” the embassy stated.

"The political persecution against him, his family, and his followers is shameful and disrespects Brazil's democratic traditions," it added.

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