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"Equality of conditions"
Trump justified his decision by stating that the U.S. and Brazil have maintained a trade relationship that "has been far from reciprocal" and that "50% is much less than what is needed to achieve the equality of conditions we must have with your country".
He warned that if Brazil responds with reciprocal tariffs, taxes would increase another 50%. But he also left open the possibility of negotiating for Brazil to open its market to the U.S. without taxes and achieve a balance in the trade balance.
The 50% taxes on Brazilian imports would take effect starting August 1.
The U.S. is Brazil's second most important trading partner, only behind China.
Historically, the trade balance has been favorable for Americans, who have accumulated a surplus of $43 billion in the last ten years, according to the American Chamber of Commerce for Brazil.
Trump and Bolsonaro coincided as presidents during the first term of the American in the White House and developed a political affinity that has remained in effect until now.
Both were accused in their countries of trying to remain in power after losing their immediate re-election.
But unlike Trump, who was able to participate and win in the upcoming U.S. elections in 2024, Bolsonaro has been disqualified by Brazilian justice from running for elective office until 2030 for abuse of political power.
Trump suggested on Monday that the "only trial" should be at the polls.
In his letter to Lula, Trump also stated that there has been an "attack on the freedom of expression of Americans" in Brazil due to orders from the Supreme Court against social media platforms "threatening them with million-dollar fines and expulsion from the Brazilian market".
