#TrumpTariffs READ THE LETTER: The USA announced a 50% tariff on Brazil in retaliation to tariffs and the trial.

President Donald Trump announced on Wednesday (9) that the United States will impose a 50% tariff on imports from Brazil, partly as retaliation to the current accusation against former President Jair Bolsonaro.

In a letter to President Luiz Inácio Lula da Silva, Trump states that the new tariff, which represents a significant increase from the 10% rate that the USA imposed on Brazil in early April, was also motivated by the "very unfair trade relationship" with the country, stating that it has been "far from reciprocal."

The American president says that Brazil's trade policies have caused "unsustainable trade deficits against the United States," which threaten the economy and national security of the USA.

However, the United States has a trade surplus in goods with Brazil, totaling US$ 7.4 billion in 2024, according to the Office of the United States Trade Representative.

Brazil is among the 20 largest trading partners of the United States. Of the other seven countries mentioned in Trump's announcements on Wednesday, only the Philippines, which sent about US$ 14.1 billion in goods to the USA last year, ranks among the 50 largest trading partners.

Immediate impact

The announcement had an immediate impact on futures markets in Brazil: the Ibovespa futures contract maturing in August 2025 (INDQ25) fell 2.23%, to 138,085 points, while the dollar futures contract maturing in the same month surged 1.76%, equivalent to R$ 5.58, around 5:40 PM (Brasilia time).

Letter from Donald Trump to Brazil:

I have met and dealt with former President Jair Bolsonaro, and I deeply respected him, just like most other leaders of countries. The way Brazil has treated former President Bolsonaro — a highly respected leader worldwide during his term, including by the United States — is an international disgrace.