Trump hits Brazil with 50% tariff, orders unfair trade practices probe

U.S. President Donald Trump has imposed a 50% tariff on Brazilian exports to the United States and ordered an investigation into Brazil’s trade practices. The move comes amid ongoing trade negotiations with the European Union and new tariffs on several other countries. These actions have raised concerns about global economic stability and have prompted discussions on potential trade agreements before the new tariffs take effect on August 1.

Key Developments

Trump raises Brazil’s Aug 1 tariffs to 50% from 10%.
New tariffs announced on copper, semiconductors, pharmaceuticals.
Tariff letters sent to Philippines, Iraq, Sri Lanka, and others.
EU and US nearing trade agreement, with EU seeking auto industry protections.

Background

On July 9, President Trump announced a sharp escalation in trade measures against Brazil, increasing tariffs on Brazilian exports to 50% and ordering a Section 301 investigation into Brazil’s trade practices. The move follows earlier 10% tariffs imposed in April and comes as the U.S. seeks new trade deals with the European Union and other partners.

“They treated us very badly until recently, and now they’re treating us very nicely. It’s like a different world, actually,” Trump said regarding EU negotiations.

Global Impact

Brazil is the 15th largest U.S. trading partner, with $92 billion in two-way trade in 2024.
U.S. research group Yale Budget Lab estimates consumers now face an effective U.S. tariff rate of 17.6%, the highest since 1934.
Equity markets shrugged off the latest tariff salvo, but business uncertainty remains high.

Reactions

Brazilian President Luiz Inacio Lula da Silva pledged reciprocity, while Massachusetts Governor Maura Healey criticized the move as a “failed trade war.” EU trade chief Maros Sefcovic expressed hope for a deal within days, though Italian officials warned talks remain complicated.

Visuals

A drone view shows containers stacked at the port of Rotterdam in Rotterdam, Netherlands, July 9, 2025. — *Image: Bart Biesemans/Reuters*

Conclusion

With the August 1 deadline approaching, global markets and policymakers are watching closely as the U.S. and EU race to finalize a trade agreement and Brazil weighs its response to the new tariffs.

Source: Reuters