July 10, 2025
Article from Bloomberg by Hadriana Lowenkron
Article Synopsis
Donald Trump has threatened a 50% tariff on Brazil to pressure the country into dropping charges against former President Jair Bolsonaro, calling the trial a “witch hunt.” This marks an unprecedented use of U.S. trade policy to influence another country’s legal system. Brazil’s President Lula da Silva pushed back, vowing economic retaliation and defending national sovereignty.
The move adds to Trump’s pattern of using tariffs for political leverage, raising concerns about the reliability of U.S. trade agreements. While markets have stayed relatively calm, Brazil’s currency dropped, and economists warn that even finalized deals may not protect countries from future tariff threats.
