WASHINGTON — On Wednesday, President Donald Trump enacted an executive order to implement the previously mentioned 50% tariffs on Brazil. This decision was made on the grounds that the policies of Brazil and the legal proceedings against former President Jair Bolsonaro create an economic emergency, as outlined in legislation from 1977.
Trump initially issued the threat of tariffs on July 9 through a letter addressed to President Luiz Inacio Lula da Silva. The foundation for this threat was an earlier executive order, which stated that trade imbalances jeopardized the American economy. However, data from the U.S. Census Bureau indicates that the United States had a $6.8 billion trade surplus with Brazil last year.
A White House statement highlighted efforts by Brazil’s judiciary to manipulate social media companies and curb user activities, though it didn’t specify the affected companies—X and Rumble being likely ones. Trump seemingly aligns himself with Bolsonaro, who tried to reverse his 2022 electoral defeat to Lula. Trump faced similar charges in 2023 related to his attempts to contest the results of the 2020 U.S. presidential election.
The newly signed order stipulates a 40% increase on the already existing 10% tariff on Brazilian imports, although not all imports would be affected. Some exemptions include civil aircraft and parts, aluminum, tin, wood pulp, energy products, and fertilizers. This tariff hike is scheduled to take effect a week after the signing.
Additionally, on the same day, Trump’s Treasury Department announced sanctions against Brazilian Supreme Court Justice Alexandre de Moraes. The sanctions cite allegations of infringing on freedom of expression and are linked to Bolsonaro’s ongoing legal battle. De Moraes is presiding over the case where Bolsonaro is accused of orchestrating plans to remain in power following his 2022 electoral loss.
Earlier, on July 18, the State Department introduced visa restrictions targeting Brazilian judicial figures, including Justice de Moraes.