US President Donald Trump said he was planning to impose a 50% tax on goods made in Brazil, escalating his fight with the South American country.
He announced the plan in his latest tariff letter, which was shared on social media.
In it, Trump accuses Brazil of “attacks” on US tech companies and of conducting a “witch hunt” against former far-right president Jair Bolsonaro, who is facing prosecution over his alleged role in a plot to overturn the 2022 election.
Responding in a social media post, Brazilian President Luiz Inácio Lula da Silva said an increase in tariffs on Brazil would be reciprocated, and he warned against any interference in the nation’s judicial system.
Trump also sparred with Lula about Bolsonaro’s trial earlier this week.
At the time, Lula said Brazil would not accept “interference” from anyone and added: “No one is above the law.”
Also on Wednesday, Trump said a 50% tariff on copper imports, that he announced earlier this week, will come into effect on 1 August.
He said in a social media post that the decision was made due to national security concerns.
Trump has posted 22 letters to countries around the world this week, including trade partners such as Japan, South Korea and Sri Lanka, outlining new tariffs on their goods which he says will come into force on 1 August.
Those moves have largely served to revive plans he had put forward in April, but that were put on hold after financial markets recoiled at the measures.
But the message to Brazil was a far more targeted missive and threatened a significant increase from the 10% tariff the White House had previously announced on goods from the country.
Unlike many other countries, the US enjoyed a trade surplus with Brazil last year, selling more goods in the country than it purchased from it.
In the letter, Trump called the 50% rate “necessary… to rectify the grave injustices of the current regime”.
He said he would order the US Trade Representative to launch a so-called 301 investigation into Brazil’s digital trade practices.
Such a move would mark a turn towards a more established legal process that the US has used to impose tariffs in the past, toughening the threat. In his first term, Trump took a similar step over Brazil’s consideration of a tax targeting tech firms.
Trump, in the letter, accused the Brazilian government of “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans” including the censorship of “US Social Media platforms”.
The US president’s company Trump Media, which operates his Truth Social platform, is among the US tech companies fighting Brazilian court rulings over orders suspending social media accounts.
The country had also temporarily banned Elon Musk’s X, formerly known as Twitter, after the platform refused to ban accounts that were deemed by Brazil to be spreading misinformation about the 2022 Brazilian presidential election.