What Trump Really Wants from Brazil
Donald Trump's recent move to impose a 50% tariff on Brazilian products, officially framed as a reaction to the "persecution" of former president Jair Bolsonaro, goes far beyond personal loyalty. Beneath the political rhetoric lies a web of strategic and economic interests that explain why Brazil has become a prime focus for the U.S. under Trump. While Bolsonaro serves as a convenient symbol for rallying Trump’s base, the deeper motivations point to broader concerns — from global monetary dynamics to geopolitics, technology, and natural resources.
At the heart of this tension is Brazil’s prominent role within the BRICS bloc and President Lula’s vocal support for moving away from the U.S. dollar in international trade. Lula has consistently advocated for a common BRICS currency or alternative payment systems that bypass the dollar. In Washington, such proposals are seen as direct threats to one of America's core strategic assets: the so-called "exorbitant privilege" of issuing the world’s dominant reserve and trade currency.
From a geopolitical perspective, Trump views the rise of BRICS and its anti-dollar sentiment as a challenge to U.S. dominance in the global financial system. If successful, this shift could reduce global demand for U.S. Treasury bonds and open the door for China and Russia to expand their influence. By putting pressure on Brazil, Trump aims to send a clear message to other BRICS leaders — particularly Beijing, Moscow, and New Delhi — that challenging the dollar comes with consequences. Among the BRICS nations, Brazil is uniquely vulnerable due to its heavy reliance on exports and its economy's sensitivity to trade barriers.
Beyond monetary policy and geopolitics, other key interests are in play. Brazil holds some of the world’s richest reserves of rare earth minerals — vital for advanced technologies and defense systems.