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Trump sends more tariff letters after spat with Brazil

War of words: Brazilian President Luis Inacio Lula da Silva and US President Donald Trump.

War of words: Brazilian President Luis Inacio Lula da Silva and US President Donald Trump.

President Donald Trump says the United States will impose a 50 per cent tariff on all imports from Brazil after a public spat this week with his Brazilian counterpart, who called him an unwanted “emperor”.

In a letter on Wednesday, Trump linked the tariffs to Brazil’s treatment of former president Jair Bolsonaro, who is on trial over charges of plotting a coup to stop President Luis Inacio Lula da Silva from taking office in 2023.

The letter said the levies, which are expected to inflict great pain in Brazil, were imposed due “in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans”.

Brazil’s real currency added to earlier losses to fall more than 2 per cent against the dollar after the announcement, and companies such as plane-maker Embraer and oil major Petrobras also suffered setbacks in the US stock market.

Trump on Wednesday also sent a barrage of letters to seven other countries that dictate steep new tariff rates from August 1. He posted all eight two-page letters – addressed to the leaders of the Philippines, Brunei, Moldova, Algeria, Iraq, Libya, Sri Lanka and Brazil – on his Truth Social platform.

The latest batch came two days after he sent letters to 14 countries, telling them to expect higher tariffs, and laid out plans to impose 200 per cent tariffs on drug imports, threatening Australia’s third-most significant export to America. That prompted a quick response from Australia, with PM Anthony Albanese insisting again on Thursday that the Pharmaceutical Benefits Scheme is not up for negotiation.

The Brazilian Government didn’t immediately comment on Trump’s latest tariffs, but Lula, his vice-president, his finance minister, and others were called to an emergency meeting in Brasilia on Wednesday night to discuss the new levies.

The US is Brazil’s second-largest trading partner after China and the tariffs are a major increase from the 10 per cent that were announced in April. Trump’s letter said the 50 per cent tariff will start on August 1 and will be separate from all sectoral tariffs.

On Monday, Lula attacked Trump after the US leader had threatened to impose an additional 10 per cent tariff on the BRICS group of developing nations which he called “anti-American”, during their summit in Rio de Janeiro.

“The world has changed. We don’t want an emperor,” Lula told reporters when asked about the possible BRICS tariff.

“We are sovereign nations,” Lula said.

“If he thinks he can impose tariffs, other countries have the right to impose tariffs too.”

Tensions between the US and Brazil had already been intensifying on Wednesday after Brazil’s foreign ministry summoned the US Embassy’s chargé d’affaires over a statement defending Bolsonaro.

Around the same time, Trump, speaking to reporters at an event with West African leaders at the White House, said Brazil “has not been good to us, not good at all”, adding that the tariff rates would be based on “very, very substantial facts” and past history.

The US Embassy in Brasilia confirmed on Wednesday that its chargé d’affaires had a meeting with officials from Brazil’s foreign ministry, though it declined to share details about the conversation.

In his letter, Trump also directed US Trade Representative James Greer to initiate a probe into what he called unfair trade practices by Brazil, particularly on US companies’ digital trade. Trump also criticised decisions from Brazil’s Supreme Court that he said censored social media firms.

The tariffs on Brazil could have a significant impact on food prices in the United States. Around a third of the coffee consumed in the US, the world’s largest drinker of the beverage, comes from Brazil, which is the world’s largest coffee grower. Annual Brazilian coffee exports to the US are close to eight million bags, according to industry groups.

Algeria, Libya, Iraq and Sri Lanka face tariff rates of 30 per cent, while Brunei and Moldova were threatened with 25 per cent and the Philippines 20 per cent.

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