Trump hits Brazil hard, announcing a 50% tariff on their goods.

President Trump announced on Wednesday that the United States will impose import tariffs of up to 50% on goods from Brazil starting on August 1st. This tariff rate is much higher than the 25% to 40% range he announced for 21 other countries earlier this week. This decision not only caught the Brazilian government off guard but also attracted international attention. The trigger for this tariff escalation was Trump's strong dissatisfaction with the trial of former Brazilian President Bolsonaro by the current Lula government in Brazil. In a strongly-worded letter, Trump described the trial as an "international disgrace," stating that "this trial should not proceed," and characterizing it as a "political persecution witch hunt." Bolsonaro is currently facing trial for allegedly attempting to overthrow the Lula government after the 2022 Brazilian elections and has been banned from running for office until 2030. In his letter, Trump stated that one of the reasons for the higher tariffs on Brazilian goods is because Brazil has been "maliciously attacking the free electoral system and violating the basic freedom of speech rights of Americans." This letter, unlike the standardized notifications he sent to other countries, shows Trump's high level of attention to the issue with Brazil. Meanwhile, Trump also ordered a trade investigation against Brazil based on Section 301 of the U.S. Trade Act. Section 301 allows the U.S. to take retaliatory measures against other countries deemed to engage in "unfair" trade practices, typically including imposing high tariffs. Earlier that day, Trump also announced new tariff plans on goods from seven other countries via social media: goods from the Philippines will be subject to a 20% tariff, while goods from Algeria, Iraq, Sri Lanka, and Libya will face a 30% tariff, and goods from Brunei and Moldova will face a 25% tariff. These tariff measures are part of a series of tariffs. On Monday, Trump announced the first batch of 14 tariff letters, explicitly stating that if new trade agreements are not reached by August 1, the U.S. will impose tariffs on goods from countries including Japan, South Korea, Laos, and Myanmar. The tariffs on goods from Japan and South Korea will be 25%, while those from Laos and Myanmar will be as high as 40%. In response to a question from the press, Trump explained that the tariffs were based on "common sense, the U.S. trade deficit, and the treatment we have received in recent years." He also stated that he has not heard much complaint from other countries about the tariffs. As the August 1 deadline approaches, Trump also hinted that some countries are likely to reach new trade agreements in the next few days. According to reports from foreign media, the EU may be close to a preliminary agreement that could maintain a 10% tariff on most goods, maintain a 25% tariff on cars, and a 50% tariff on steel. However, the U.S. may provide exemptions for aircraft, spirits, and other sectors. Trump also revealed that the U.S. will soon impose a 50% tariff on copper goods, and tariffs on pharmaceuticals could even reach 200%. He emphasized that the August 1 negotiation deadline will not be further postponed, and the grace period for high tariffs originally expired on July 8. Although these news could cause market jitters, the stock market response was muted. Analysts believe this is because the market generally expects some agreements to be reached at the last moment, or they believe that these tariffs will not be fully implemented in the end. According to sources cited by foreign media, the decision to delay the implementation of broader high tariffs was made under the advice of top White House officials, including the Treasury Secretary. They believe that giving more time for negotiations could lead to more agreements. This also suggests that a series of new agreements may be reached before or even after August 1.