The United States, under the direction of former President Donald Trump, intends to impose a 50 per cent tariff on all products imported from Brazil. This tariff is scheduled to take effect on August 1, according to a letter from Trump to Brazilian President Luiz Inacio Lula da Silva. The announcement signals a potential shift in trade relations between the two nations.
Trump’s letter specified that the new 50 per cent tariff would be applied separately from any existing sectoral tariffs already in place. The former president has also voiced his support for former Brazilian President Jair Bolsonaro in the communication. The precise rationale behind the tariff imposition was not detailed in the initial announcement.
In addition to the tariff announcement and support for Bolsonaro, Trump has been critical of the BRICS economic alliance, of which Brazil is a key member. BRICS is an acronym for the world’s leading emerging economies, namely: Brazil, Russia, India, China, and South Africa. These countries are deemed as engines for growth in the developing world.
