New tariffs to go into effect Aug. 6 after a seven-day window closes as US president seeks to ramp up pressure on Sao Paulo
US President Donald Trump signed on Wednesday a new executive order to dramatically escalate tariffs on Brazilian exports, but created loopholes for a handful of products.
The White House said Trump was raising tariffs to 50% "to deal with recent policies, practices, and actions by the Government of Brazil that constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States."
It cited the ongoing trial of former President Jair Bolsonaro, a Trump political ally who is facing charges of attempting to orchestrate a coup in Brazil. Trump's order says the trial is tantamount to political persecution, saying Bolsonaro has been "unjustly charged" with several crimes.
Several articles are granted exemptions under Trump’s order including civil aircraft and parts that likely benefit Brazilian aerospace firm Embraer, wood pulp, precious metals, energy and energy products, and fertilizers. Orange juice is also exempted.
The new tariffs will go into effect Aug. 6 after a seven-day window closes.
Trump had vowed to raise tariffs on Brazil to 50% unless President Lula de Silva halted the ongoing trial of Bolsonaro.
The treasury and state departments earlier announced sanctions against the Brazilian supreme court judge overseeing the trial.
The Treasury Department accused Alexandre de Moraes of using his powers “to authorize arbitrary pre-trial detentions and suppress freedom of expression."
“Alexandre de Moraes has taken it upon himself to be judge and jury in an unlawful witch hunt against U.S. and Brazilian citizens and companies,” Treasury Secretary Scott Bessent said in a statement.
