US President Donald Trump announced a 50% tariff on Brazilian imports. This is a measure that escalates tensions after a week of diplomatic strain. The new tariffs will take effect on August 1st.
This announcement was delivered through an official letter sent to Brazilian President Luiz Inácio Lula da Silva via Trump's social media channel.
In the letter, Trump mentioned Brazil's "unfair trade practices" and criticized the Brazilian Supreme Court's handling of former President Jair Bolsonaro, who is currently on trial for allegedly inciting an anti-democratic coup attempt.
That event led to the invasion of the Planalto Presidential Palace in Brasília on January 8, 2025.
Donald J. Trump Truth Social 07.09.25 04:17 PM EST pic.twitter.com/SGIPwBU4nl
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) July 9, 2025
Tensions between the two countries escalated further this week after Trump posted messages supporting Bolsonaro and criticizing the BRICS summit.
He warned that any country aligning with the "anti-American BRICS policy" would face an additional 10% tariff.
This measure came amid already heightened market sensitivity following the FOMC minutes released today. Most Federal Reserve officials showed a preference for rate cuts in 2025, with some considering easing on July 30th.
Immediately after the news of Brazilian tariffs, Bitcoin retreated from its new all-time high of $112,000 to around $110,800.
The cryptocurrency market, previously buoyed by optimism about Federal Reserve rate cuts, showed caution as global trade tensions reignited.
This story is developing.
