‘Insidious attacks on…’: Why Trump hiked tariff on Brazil from 10% to 50%

US President Donald Trump has announced a 50 per cent tariff on goods from Brazil, as well as 50 per cent on copper imports. Despite a balanced trade relationship with the US, Brazil was informed that the US 'reciprocal tariff’ would increase from 10 per cent to 50 per cent from August 1. 

The levies were imposed due "in part to Brazil's insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans," the letter said. 

Brazilian President Lula, along with his vice-president and finance minister, held an emergency meeting in Brasilia to discuss the new tariffs. In a social media post after the meeting, Lula denied US claims that trade between the two countries was unfair to America, stating that the US runs a trade surplus against Brazil.

Lula emphasised that sovereignty, respect, and defending the interests of the Brazilian people guide the country's international relations. The US is Brazil's second-largest trading partner after China. 

"Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage," Lula responded on social media. "Any measure to unilaterally raise tariffs will be responded to in accordance with Brazil's Economic Reciprocity Law," stated the President's office said in a statement.

Earlier, Lula responded to US threats of an additional 10 per cent tariff on the BRICS nations, calling the world changed and rejecting the idea of an 'emperor'. Tensions escalated after Brazil's foreign ministry summoned the US Embassy chargé d'affaires over a statement defending former President Bolsonaro. President Trump criticised Brazil, saying it had not been good to the US and that tariff rates were based on substantial facts and history.

The US Embassy confirmed the meeting with Brazilian officials but did not provide details. Trump has expressed support for Bolsonaro, calling the legal cases against him a 'witch hunt', a term he has used for cases against himself and other global leaders.

The US Embassy in Brasilia issued a statement condemning the political persecution of Bolsonaro and his supporters as shameful and disrespectful to Brazil's democratic traditions. Bolsonaro, in a social media post, said he was persecuted because he remains alive in public memory and is a feared name even out of power.

Trump directed US Trade Representative James Greer to investigate unfair trade practices by Brazil, especially regarding digital trade. He also criticised Brazil’s Supreme Court for decisions that censored social media firms.

Lula defended the Supreme Court's rulings and stated that freedom of expression should not be confused with aggression or violence. He also rejected Trump's accusations of a witch hunt against Bolsonaro, saying the case is for the courts to decide and should not be influenced by threats that could compromise the independence of national institutions.

50% TARIFF ON COPPER

Trump announced a new 50 per cent tariff on copper to start on August 1, aimed at promoting domestic development of an industry critical to defence, electronics and automobiles. This is the latest in a series of sectoral tariffs Trump has placed on industries such as steel and aluminium. Trump had signalled on Tuesday that fresh tariffs on copper were imminent, which pushed US Comex copper futures to record highs.

Trump said on Wednesday that he received a "robust" national security assessment concluding tariffs were necessary to protect US production of copper, a commodity critical across many industries. "Copper is necessary for semiconductors, aircraft, ships, ammunition, data centres, lithium-ion batteries, radar systems, missile defence systems, and even hypersonic weapons, of which we are building many," Trump said in a post on Truth Social.

Countries expected to be most affected by the tariff include Chile, Canada and Mexico, the top suppliers of refined copper, copper alloys and copper products to the US in 2024, according to US Census Bureau data.