Trump hits Brazil with 50% tariffs over Bolsonaro prosecution

Trump imposed a 10% baseline tariff on Brazilian imports Apr. 2, 2025 as part of 'Liberation Day' tariffs covering nearly all countries, then added a 40% tariff on Brazil specifically Jul. 30, 2025 (cumulative 50% rate), citing Brazil's prosecution of former President Jair Bolsonaro for coup conspiracy alongside trade concerns (White House Executive Order 14323, Jul. 30, 2025).

USTR Jamieson Greer launched a Section 301 investigation into Brazil Jul. 15, 2025 examining six trade practices: digital payment services restrictions on US companies, preferential tariffs for competitors, anti-corruption enforcement, intellectual property protection, ethanol market access barriers, and inadequate illegal deforestation enforcement (USTR Press Release, Jul. 15, 2025).

The Court of International Trade ruled May 28, 2025 that Trump's IEEPA-based tariffs exceeded presidential authority, the Federal Circuit affirmed that ruling 7-4 on Aug. 29, 2025, and the Supreme Court granted certiorari Sep. 9, 2025 with oral arguments held Nov. 5, 2025—meaning tariffs remain in effect pending final decision but could trigger hundreds of billions in refunds if struck down (Federal Circuit Opinion, Aug 29, 2025).

Brazil responded with its Economic Reciprocity Act (Law 15,122) signed Apr. 14, 2025, giving President Lula authority to impose countermeasures on US imports, investment, and intellectual property without WTO authorization, with a Jul. 14, 2025 decree enabling immediate retaliation targeting US pharmaceutical patents and digital services (Brazilian Government, Apr. 14, 2025).

Trump exempted 694 Brazilian products worth $18.4 billion (43.4% of bilateral trade) from the 50% tariff on Aug. 6, 2025—including orange juice, Embraer aircraft, oil, and minerals—then removed an additional 238 agricultural classifications including coffee and beef on Nov. 13, 2025 after industry complaints about consumer price increases (White House Executive Order, Nov. 13, 2025).