Trump imposes 50% tariffs on Brazil, exempts key sectors

US President Donald Trump on Wednesday signed an executive order imposing a sweeping 50 percent tariff on most Brazilian imports, citing Brazil’s criminal prosecution of former President Jair Bolsonaro as grounds for an “economic emergency.”

The move marks a sharp escalation in Trump’s rhetoric against Brazil’s current government, which he accuses of targeting Bolsonaro in what he called a “witch hunt.” However, the White House softened the blow by exempting several major sectors from the new tariffs, including civil aircraft and parts, energy products, fertilizers, orange juice, aluminum, tin, and wood pulp.

Trump invoked a rarely used 1977 law to justify the move, framing the situation as a national economic emergency. The executive order follows a July 9 letter to Brazilian President Luiz Inácio Lula da Silva, in which Trump threatened tariffs unless the prosecution of Bolsonaro was halted.

Despite Trump’s claims of a trade imbalance, the United States ran a $6.8 billion trade surplus with Brazil in 2024, according to the US Census Bureau.

In a statement, the White House also accused Brazil’s judiciary of coercing social media platforms and suppressing free expression, though it did not name the companies involved. Platforms like X and Rumble have been at the center of related disputes.

Trump has publicly supported Bolsonaro, who is facing charges related to his alleged attempt to overturn the results of Brazil’s 2022 presidential election. Trump himself was indicted in 2023 for similar efforts following his 2020 election defeat.

Brazilian markets responded with cautious optimism. Shares of planemaker Embraer and pulp producer Suzano rose following news that their industries would be exempt from the new tariffs.

The order adds a 40 percent surcharge to the existing 10 percent tariff on applicable Brazilian goods, intensifying trade tensions while signaling Trump’s continued alignment with far-right leaders abroad.