Trump threatens 50% tariffs in Brazil due to Bolsonaro process
Trump threatens 50% tariffs in Brazil due to Bolsonaro process
On Wednesday, US President Donald Trump threatened Brazil with a devastating import customs of 50 %, which could come into force from August 1st. This emerges from a letter that he sent to Brazilian President Luiz Inácio Lula da Silva.
Trump criticizes Brazil and Lula
In the letter published on Truth, Trump Lula accused a "witch hunt" against the former right President Jair Bolsonaro, who should "end immediately". Bolsonaro, who is proud of his close relationship with Trump, is currently facing a process because he is supposed to try to stage a overthrow against Lula.
Brazil does not give way back
In return, Lula promised that Brazil will react to Trump's threats accordingly. "Brazil is a sovereign country with independent institutions and will not accept a form of guardianship," said Lula in a post to X. He added: "Any measure to unilaterally increase the tariffs is answered in accordance with the Brazilian law of economic reciprocity."trade deficit and effects
This is the first time in months that another country threatens to respond to Trump's customs threat. In contrast to 21 other countries who received letters from Trump this week, Brazil recorded a trade deficit of $ 6.8 billion with the USA last year, which means that the United States exported more to Brazil than they imported. The most important US exports to Brazil were airplanes, spaceships and industrial machines last year
response to Trump's threat
The imports from Brazil to the USA have been subject to a minimum customs of 10 %since Trump's announcement of the "mutual" tariffs in April. This base set was determined during the 90-day negotiation period, which has now been extended until August 1st. This threat is not the first one with which Trump tries to influence the domestic policy of other countries.
global effects of customs threats
Overall, Trump contacted several countries this Wednesday, including the Philippines and Sri Lanka, and threatened to exports to the United States with a duty rate of up to 30 %. The new tariffs should come into force on August 1, subject to negotiations. Trump has also pointed out trade deficits with other nations and explained that the tariffs are issued to other policies perceived as harmful.
new tariffs on copper imports
Later on Wednesday, Trump also announced a 50 % inch for copper imports, according to him that he was a result of a national security assessment. "Copper is the second most important material for the Ministry of Defense," said Trump and criticized the previous government for dealing with the copper industry.
future of the American copper industry
The USA import about half of the copper used, mainly from China, Chile, Japan and the Congo. Trump emphasized that America would rebuild its dominant copper industry. However, analysts are skeptical whether high tariffs can quickly increase American copper production or whether this will drive up prices for consumers.
These developments require a precise observation, since the trade relationships between the USA and other countries are still under pressure. The reactions from countries such as China and Brazil could significantly influence the global trade landscape.
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