President Trump is stepping into Brazil’s political fray by urging legal action against former president Jair Bolsonaro, suggesting he could impose tariffs of up to 50% on Brazilian imports if that doesn’t happen.
In a letter to President Luis Inacio Lula da Silva, Trump expressed that the treatment of Bolsonaro, who he claims is a globally respected leader, represents an “international dishonor.” He called the trial against Bolsonaro a “witch hunt” that should conclude quickly.
Trump mentioned other reasons for his tariff threats, including a Supreme Court ruling regarding American social media companies and what he characterized as a trade deficit with Brazil, although the reality is that the U.S. enjoys a trade surplus with Brazil.
This focus on Bolsonaro is noteworthy given the former president is facing criminal charges related to alleged coup attempts following disputed election results. Bolsonaro, who served as Brazil’s president from 2019 until 2022, lost the election to Lula. After casting doubt on the election’s legitimacy, many of his supporters stormed critical government buildings.
Currently, prosecutors describe this as an attempted coup, and Bolsonaro is fighting legal challenges.
Here are five key insights regarding Trump’s recent tariff threats:
Pushback from Brazil
Lula has vowed to retaliate if the U.S. follows through with tariffs, which Trump announced would start on August 1st. In a statement on Wednesday, Lula firmly defended Brazil’s independence in judicial matters.
“Brazil is a sovereign state with independent institutions and does not accept any form of guidance,” Lula stated on social media.
He continued, saying that the legal process concerning those involved in the coup is strictly under Brazil’s jurisdiction, free from foreign interference that could undermine institutional independence.
While Lula lacks authority to influence the Supreme Court’s proceedings against Bolsonaro, he is preparing a task force to evaluate possible counteractions against the U.S., as reported by Bloomberg.
Insiders suggest that Lula might leverage the conflict with Trump to bolster his position ahead of the 2026 presidential election.
The U.S. is Brazil’s second-largest export partner
The U.S. maintains a trade surplus with Brazil, exporting more to the country than it imports. While China is Brazil’s largest export partner, the U.S. ranks second.
Brazil is a significant coffee supplier to the U.S., accounting for a substantial portion of American imports valued at around $2.4 billion from May 2024 to April 2025.
Following Trump’s tariff announcement, coffee prices have surged, leading to concerns about potential increases for American consumers due to additional tariffs imposed on Vietnam, another major coffee producer.
Brazil is also impacted by previous tariffs imposed on steel and aluminum.
Trump and Bolsonaro’s connection
Trump and Bolsonaro have shared a close relationship, especially during their respective terms in office. Bolsonaro earned the nickname “tropical Trump,” and they actively supported each other’s re-election campaigns.
Bolsonaro’s son, Eduardo, is reportedly linked with several of Trump’s advisors. Following the unrest in Brazil, Bolsonaro has been residing in Florida, mostly staying out of the limelight.
Earlier this week, Trump defended Bolsonaro, paralleling his legal challenges to those faced by himself after the January 6 Capitol attack.
“Leave Bolsonaro alone!” Trump posted on Truth Social.
Utilizing tariffs as leverage
Trump’s recent tariff threats are part of a broader strategy to influence foreign policy changes unrelated to trade.
In January, he threatened tariffs on Colombia, following its rejection of two U.S. planes carrying suspected drug traffickers. He later backed down amidst diplomatic tensions.
Earlier this year, Trump also imposed tariffs on Canada and Mexico, tying them to demands for action against illegal immigration and drug trade.
Broader tariff proposals, including a so-called “Day of Liberation” plan, have been discussed but are yet to materialize.
Legal challenges ahead
Trump’s authority to impose tariffs is rooted in a 1977 law, the International Emergency Economic Powers Act (IEEPA), which allows for regulation of various economic issues during a national emergency. However, a federal court recently challenged the justification for such tariffs, allowing them to proceed while the administration appeals the decision, with the Supreme Court also involved.
After Trump’s announcement regarding Brazil, roughly 200 Democrats supported a brief contesting the legality of his tariff powers.
