This week, U.S. President Donald Trump announced a 50% tariff on all Brazilian imports, effective August 1st. He cited Brazil’s prosecution of former President Jair Bolsonaro, labeling it a “witch hunt” and an “insidious attack” on free speech and election integrity.

Brazilian President Lula immediately summoned the U.S. chargé d’affaires, denouncing Trump’s demand to drop the trial and reaffirming Brazil’s independent institutions. Lula called Trump’s letter “offensive” and warned of reciprocal counter-tariffs.

This action follows Eduardo Bolsonaro’s temporary resignation from Congress in March 2025 and his move to the U.S. to lobby for political asylum and pressure Brazil’s judiciary – specifically Supreme Court Justice Alexandre de Moraes. His goal, he told APB News earlier this year, is to rally U.S. officials to sanction de Moraes and promote clemency for those involved in the January 8th riots in Brasília.

Brazil is the U.S.’s second-largest trading partner, exporting around $40 to $50 billion annually, including coffee, orange juice, steel, and iron.

The announcement caused Brazil’s real to fall over 2% and sparked broader market uncertainty.

This is a developing story.