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Donald Trump has announced plans to impose a 50% tariff on Brazil and has accused the country of violating free speech rights, sparking increased tensions between the US and Latin America’s largest economy.
In a statement on Truth Social, Trump criticized the treatment of Brazil’s former president Jair Bolsonaro, who is currently facing trial over an alleged coup plot. Trump described Bolsonaro as a “Highly Respected Leader” and called the case against him a “Witch Hunt.”
The tariff, set to take effect on August 1, is partially in response to Brazil’s alleged attacks on free elections and free speech rights of Americans, according to Trump.
In addition, Trump accused Brazil’s Supreme Court of issuing “hundreds of SECRET and UNLAWFUL Censorship Orders” against US social media platforms.
Following Trump’s announcement, Brazil’s currency dropped 2.3% against the US dollar, and the Bovespa share index futures were down 1.4%.
In response, Brazil’s president, Lula, indicated that the country would retaliate using the Brazilian Economic Reciprocity Act.
Trump’s actions against Brazil are part of a broader campaign targeting 22 countries with tariffs, as he pressures trading partners to make deals or face levies.
The US president’s intervention in favor of Bolsonaro has heightened tensions between the two countries, with Brazil denouncing the new tariffs as unfair and harmful to the American economy.
The US currently enjoys a goods trade surplus of $7.4 billion with Brazil, according to the Office of the US Trade Representative.
Despite the escalating trade dispute, Brazil has vowed to uphold its sovereignty and independence in the face of US pressure.
The escalating trade conflict between the US and Brazil has raised concerns about the future of their diplomatic relations and the implications for global trade.
Prosecutors have charged Bolsonaro with planning a coup, but he denies any wrongdoing, while Lula has emphasized that the legal proceedings are internal matters for Brazil.
US secretary of state Marco Rubio has hinted at possible sanctions against a Brazilian Supreme Court justice over issues related to free speech and fake news.
The situation remains tense as both countries navigate the complexities of international trade and political relations.