US imposes steep tariffs on Brazil but key sectors are excluded

US President Donald Trump on Wednesday hit Brazil with a 50 per cent tariff on most of its goods, escalating the growing diplomatic crisis with Latin America’s biggest economy.

Trump also unveiled sanctions on the Brazilian Supreme Court judge who is overseeing the trial of his ideological ally, former President Jair  Bolsonaro.

The right-wing Bolsonaro is facing charges of plotting a coup after losing the 2022 president election, won by left-wing Luiz Inácio Lula da Silva.

Similarly, Trump was indicted in 2023 for his efforts to overturn the results of the 2020 US presidential poll.

Trump has described Bolsonaro’s trial as a “witch hunt”.

His administration also accuses Brazil of conduction “an oppressive campaign of censorship” against conservative voices online.

In his executive order, Trump said actions by Brazil’s government and Supreme Court “threaten the national security, foreign policy, and economy of the United States.”

President Lula has publicly defied Trump for weeks and on Wednesday described the US government’s interference in Brazilian justice as “unacceptable”.

"I'm heading to a meeting to defend another kind of sovereignty, that of the Brazilian people in response to the measures announced by the president of the United States. So today, for me, is a sacred day of sovereignty,” he said.

The 50 per cent tariff is the highest of any levies Trump has imposed on other economies this year.

But he softened the blow by excluding some of Brazil’s key exports to the US from heavier tariffs, including civil aircraft, energy, precious metals, fertilisers, and orange juice.

They will face the baseline 10 per cent tariff already being levied by Trump.

Analysts say, however, the exceptions are likely in response to the concerns of US companies.

Vinicius Vieira, professor of international relations at  Brazil’s FAAP university, acknowledged there have been some victories.

"Orange juice, for example, may not be that relevant in terms of value, but it is important in the interior of the state of São Paulo. In some cases, almost the entire farm production is directed to the American market,” he said.

Lula said Brazil was willing to negotiate trade with the US but would not give up on the tools it had to defend itself, hinting that it might consider retaliatory measures.

The tariffs go into effect on 6 August.