Trump feels he can use tariffs to make countries do what he says. Generally, Brazil is considered a good ally of the US, pretty much like Canada. Unlike Canada and Mexico, Brazil has a trade surplus with the US. so there is no basis for tariffs based on unequal trade. It is really amazing how Trump easily turns our allies into our enemies. Germany, France, Mexico, Canada and now Brazil. I could add the entire EU, as he’s threaten them with tariffs.
Trump has threatened 50% on all Brazilian exports due to the arrest of the former president, Jair Bolsonaro on charges that he was leading an armed criminal organization in an attack of the capital on January 8, 2023. Brazil has responded that they will immediately reciprocate with equal tariffs on US goods.
Trump’s idea is the threat of massive tariffs can result in world leaders come crawling to Trump and begging for mercy. It is a fantasy. But, it seems to play well to his base.
Background
Jair Bolsonaro was President of Brazil from January 1, 2019 to January 1, 2023. He ran for re-election in November 2022, and lost to former president Luiz Inácio Lula da Silva in a very close election. It was a clash between right wing factions (Bolsonaro) and left wing (Lula). January 1, 2023 was President elect Lula’s inauguration and it was a calm day, with a message of rebuilding and unity. See link below:
BBC Report: Lula sworn in as Brazil president as predecessor Bolsonaro flies to US
But a storm was brewing. Busloads of Bolsonaro supporters began arriving in Brasilia following inauguration day. The attacks (or insurrection or attempted coup by radical supporters) took place in government buildings on January 8. See link below:
The attacks were investigated and many arrests were made. Prosecutors in March 2025 felt they had enough evidence to charge Jair Bolsonaro with being part of the planning of the attack. It was reported by ABC News as follows:
“The prosecution accuses Bolsonaro of leading an armed criminal organization, attempting to stage a coup and attempting the violent abolition of the democratic rule of law, aggravated damage, and deterioration of listed heritage sites.
A federal police investigation placed Bolsonaro at the top of a criminal organization that had been active since at least 2021. Police say that after Bolsonaro’s loss to Lula, the organization conspired to overturn the election result.
Part of that plot included a plan to kill Lula and a Supreme Court justice, the prosecution alleges. It also says that the Jan. 8 riot when Bolsonaro supporters ransacked top government buildings a week after Lula took office was an attempt to force military intervention and oust the new president.”
Trump announced the proposed 50% tariffs on Brazil on July 9 despite a U.S. trade surplus with the country – lining it up for one of the world’s very highest such levies, close to China’s 55% rate. Brazil’s President Lula responded that he did not have the authority to drop charges against Bolsonaro.
CNN Link: Trump threatens Brazil with 50% tariffs on all exports
President Lula and Supreme Court Justice Alexandre de Moraes responses
Brazil’s President Lula responded that he did not have the authority to drop charges against Bolsonaro. Unlike the US, Brazil doesn’t have a Special Prosecutor within the Executive branch which can investigate crimes of government officials. But Special Prosecutors can be dismissed very easily, and the charges dropped.
The Brazilian Supreme Court Justice does not take orders from President Lula and has authority to investigate, charge and adjudicate certain violations of federal law. It is designed to keep rich and powerful people honest.
On July 11, 2025, the Supreme Court of Brazil forced Bolsonaro to wear an ankle monitor and conducted a search of his home. Justice Alexandre de Moraes considers Bolsonaro a flight risk. Bolsonaro’s son Eduardo, a Brazilian Congressman, has been living in Texas since February and lobbying the White House to intervene.
Bolsonaro Ordered to Wear Ankle Monitor, Escalating Brazil’s Feud With Trump
Under court orders, Bolsonaro must remain in his home during nights and weekends, may not have any contact with foreign officials. He is barred from social media.
Hours later, Marco Rubio, US Secretary of State, joined the fray by posting on X, that he was revoking visas of Supreme Court Justice Alexandre de Moraes as well as his immediate family members and allies. A total of 8 Supreme Court Justices had their visas revoked according to O Globo.
Guardian, Rubio moves to strip US visas from eight Brazilian judges in Bolsonaro battle
Trump’s Miscalculation
If Trump thought that President Lula would cave in, he was mistaken. Trump stated the 50% tariffs would begin on August 1. President Lula response is simple, as shown below, O Brasil e dos brasileiros, or “Brazil belongs to its people.” Two can play the MAGA game! But Lula is standing his ground.
“Lula, who had been facing growing public disillusionment and an uphill battle to win re-election next year, has enjoyed a bounce in the polls since Trump launched his trade war, the brunt of which will be borne by coffee producers and cattle ranchers in Bolsonaro-voting regions, such as São Paulo.”
See Link: Lula’s approval ticks up in Brazil after Trump threatens tariffs, poll shows

The trial of Bolsonaro is strictly an internal affair, and the US has no right to interfere. Bloomberg reports that the White House is looking for some legal justification.
US Seeks New Legal Grounds for Trump’s Brazil Tariff Threat
The economic consequences of 50% tariffs, and the likely reciprocal 50% on US goods sold in Brazil, may be severe as suggested in links below:
Trump tariffs wreaking havoc in Brazil’s citrus belt
Trump’s 50% tariff threat hits Brazilian chemical exports as US orders cancelled
There are many other exports from Brazil which will be impacted. Brazil exported 42.3 billion dollars of goods and services to the US last year.
A panel of judges will hear the case against Bolsonaro. They will decide if Bolsonaro is guilty of the charges, and will likely give their verdict before the end of the year.
Stay tuned,
Dave


