President Trump Imposes 50 Percent Tariff On Imported Products From Brazil

JAKARTA - President Donald Trump said on Wednesday the United States would impose a 50 percent tariff on all imports from Brazil, following a public dispute this week with the President of Brazil.

In a letter, President Trump linked the tariff to Brazil's treatment of former President Jair Bolsonaro, who is being tried on charges of planning a coup to stop President Luiz In waycio Lula da Silva from taking office in 2023.

The tax was imposed because of "partially due to the Brazilian cunning attack on the Free General Election and the fundamental Freedom of Speech of Americans," the letter said.

Brazil's real currency added to previous losses to falling more than 2 percent of the dollar following the announcement, and companies such as aircraft manufacturer Embraer and major oil company Petrobras also experienced setbacks in the US stock market, as the market reacted to levies expected to cause heavy losses in Brazil.

The Brazilian government did not immediately comment on Trump's tariff, but President Lula, vice president, finance minister, and others were called to an emergency meeting in Brasilia on Wednesday evening to discuss the new levies.

The US is Brazil's second-largest trading partner after China, and the tariff is a significant increase from the 10 percent rate announced in April. President Trump's letter states the 50 percent rate will start on August 1 and will be separate from all sectoral rates.

On Monday, President Lula attacked Trump after the US leader threatened to impose an additional 10 percent tariff on a group of BRICS countries he called "anti-American" at the group's summit in Rio de Janeiro.

"The world has changed. We don't want an emperor," President Lula told reporters when asked about the possibility of additional tariffs against BRICS.

"We are a sovereign country," he continued.

"If he feels he can charge a tariff, other countries also have the right to impose tariffs," said President Lula.

Tensions between the United States and Brazil escalated on Wednesday after the Brazilian Foreign Ministry summoned the US Embassy's attorney for a statement defending Bolsonaro.

At almost the same time, President Trump, speaking to reporters at an event with West African leaders at the White House, saying Brazil was "not good to us, not good at all," adding tariffs would be based on "very, very substantial facts" and past history.

The US Embassy in Brasilia confirmed on Wednesday its attorneys had met with officials of the Brazilian Ministry of Foreign Affairs, although declined to provide details about the conversation.

In his letter, President Trump also ordered US Trade Representative James totaling an investigation into what he called unfair trade practices by Brazil, particularly in the digital trade of US companies.

President Trump also criticized the decision of the Brazilian Supreme Court which he said censored social media companies.

Brazil's Supreme Court has long been criticized by Bolsonaro allies for ordering social media sites to remove content from the leaders of their right-wing movements. The Supreme Court also handed down more responsibility to the companies last month.

The rates imposed on Brazil could have a significant impact on food prices in the United States. About a third of the coffee consumed in the US, the world's largest coffee warrant, comes from Brazil, which is the largest coffee producer in the world. Brazil's annual coffee exports to the US are close to 8 million bags, according to industry groups.

In addition, more than half of the orange juice sold in the US comes from Brazil, which controls 80 percent of the global orange juice trade share.

The South American largest agricultural country also sells sugar, beef, and ethanol to the US, among other products.

"This move has not only had an impact on Brazil, but also the entire US juice industry which employs thousands of people and has made Brazil its main supplier for decades," said Ibiapaba Netto, executive director of Brazilian orange juice industry group CitrusBR.