ASSESSMENTS

The Implications of Trump's New Tariffs on Brazil

Jul 30, 2025 | 21:42 GMT

Brazilian President Luiz Inacio Lula da Silva speaks during a press conference at the BRICS summit in Rio de Janeiro, Brazil, on July 7, 2025.
Brazilian President Luiz Inacio Lula da Silva speaks during a press conference at the BRICS summit in Rio de Janeiro, Brazil, on July 7, 2025.

(PABLO PORCIUNCULA/AFP via Getty Images)

While most of Brazil's main exports to the United States are exempt from Trump's newly announced 40% tariff, the additional levies -- along with Brazil's impending economic retaliation and the likely arrest of former President Jair Bolsonaro -- will further strain bilateral ties. On July 30, U.S. President Donald Trump signed an executive order adding 40% tariffs on Brazil, which are set to take effect on Aug. 6, on top of the current 10% the country currently faces. This is in line with Trump's earlier threats to impose 50% tariffs on Brazilian goods, which he justified by citing, among other things, an alleged political persecution of former Brazilian President Jair Bolsonaro and several court rulings against U.S. tech companies. Since Trump made that threat on July 9, the two countries have not engaged in any formal negotiations on the tariffs, with the highest-level engagements being phone calls between Brazilian Industry...

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