Any unilateral hike in tariff to be addressed in light of Law of Economic Reciprocity, says Brazilian leader
\n WASHINGTON\/BRASILIA
\nUS President Donald Trump has announced a sharp 50% tariff on all goods coming from Brazil, just days after a public war of words with Brazilian President Luiz Inacio Lula da Silva.
\nThe sudden move follows rising tensions between the two leaders, with Trump criticising Brazil\u2019s handling of free speech and defending former President Jair Bolsonaro.
\nLula, for his part, had called Trump an unwanted \u201cemperor\u201d, adding fuel to the fire.
\nIn his letter, Trump linked the tariffs to Brazil\u2019s treatment of former President Jair Bolsonaro, who is on trial over charges of plotting a coup to stop President Luiz Inacio Lula da Silva from taking office in 2023.
\nThe levies were imposed due \u201cin part to Brazil\u2019s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,\u201d the letter said.
\nReacting to Trump\u2019s announcement, Brazil threatened to reciprocate the move. \u201cAny unilateral tariff increases will be addressed in light of the Brazilian Law of Economic Reciprocity,\u201d Lula wrote on X.
\nBrazil\u2019s real currency added to earlier losses to fall over 2% against the dollar after the announcement, and companies such as planemaker Embraer and oil major Petrobras also suffered setbacks in the US stock market, as markets reacted to levies that are expected to inflict great pain on Brazil.
\nThe Brazilian government did not immediately comment on Trump\u2019s tariffs, but Lula, his vice-president, his finance minister, and others were called to an emergency meeting in Bras\u00edlia on Wednesday night to discuss the new levies.
\nThe US is Brazil\u2019s second-largest trading partner after China, and the tariffs are a major increase from the 10% that were announced in April. Trump\u2019s letter said the 50% tariff will start on August 1 and will be separate from all sectoral tariffs.
\nOn Monday, Lula attacked Trump after the US leader had threatened to impose an additional 10% tariff on the BRICS group of developing nations, which he called \u201canti-American,\u201d during their summit in Rio de Janeiro.
\n\u201cThe world has changed. We don\u2019t want an emperor,\u201d Lula told reporters when asked about the possible BRICS tariff.
\n\u201cWe are sovereign nations,\u201d Lula added. \u201cIf he thinks he can impose tariffs, other countries have the right to impose tariffs too.\u201d
\nBolsonaro \u2018witch hunt\u2019
\nTensions between the United States and Brazil had already been intensifying on Wednesday after Brazil\u2019s foreign ministry summoned the US Embassy\u2019s charg\u00e9 d\u2019affaires over a statement defending Bolsonaro.
\nAround the same time, Trump, speaking to reporters at an event with West African leaders at the White House, said Brazil \u201chas not been good to us, not good at all,\u201d adding that the tariff rates would be based on \u201cvery, very substantial facts\u201d and past history.
\nThe US Embassy in Bras\u00edlia confirmed on Wednesday that its charg\u00e9 d\u2019affaires had a meeting with officials from Brazil\u2019s foreign ministry, though it declined to share details about the conversation.
\nTrump\u2019s support for Bolsonaro echoed his support for other global right-wing leaders who have faced domestic legal cases, like French far-right leader Marine Le Pen and Israeli Prime Minister Benjamin Netanyahu. Trump has called cases against those leaders a \u201cwitch hunt,\u201d a term he commonly used for cases that he faced himself in the US after the end of his first term in office.
\nTrump said in a social media post on Monday that Bolsonaro was the victim of such a \u201cwitch hunt.\u201d The American Embassy in Bras\u00edlia issued a statement on Wednesday to the local press echoing his remarks.
\n\u201cThe political persecution of Jair Bolsonaro, his family and his supporters is shameful and disrespectful of Brazil\u2019s democratic traditions,\u201d it said.
\nIn his letter, Trump also directed US Trade Representative James Greer to initiate a probe into what he called unfair trade practices by Brazil, particularly on US companies\u2019 digital trade. Trump also criticised decisions from Brazil\u2019s Supreme Court that he said censored social media firms.
\nBrazil\u2019s Supreme Court has long been criticised by Bolsonaro\u2019s allies for ordering social media websites to take down content from leaders of their far-right movement. The court also imposed more responsibilities on those companies last month.
\nImpact on food exports
\nThe tariffs on Brazil could have a significant impact on food prices in the United States. Around a third of the coffee consumed in the US, the world\u2019s largest drinker of the beverage, comes from Brazil, which is the world\u2019s largest coffee grower. Annual Brazilian coffee exports to the US are close to 8 million bags, according to industry groups.
\nMore than half of the orange juice sold in the US comes from Brazil, which has an 80% share of the juice\u2019s global trade. The South American agricultural powerhouse also sells sugar, beef and ethanol to the US, among other products.
\n\u201cThis 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,\u201d said Ibiapaba Netto, the executive director of Brazilian orange juice industry group CitrusBR.<\/p>\n","protected":false},"excerpt":{"rendered":"
Any unilateral hike in tariff to be addressed in light of Law of Economic Reciprocity, says Brazilian leader WASHINGTON\/BRASILIA US President Donald Trump has announced a sharp 50% tariff on all goods coming from Brazil, just days after a public war of words with Brazilian President Luiz Inacio Lula da Silva. The sudden move follows […]<\/p>\n","protected":false},"author":2,"featured_media":489549,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-489529","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n