Here's why Brazil is unfazed by Donald Trump's 50% tariffs, and it shoud worry the US
BRASILIA, BRAZIL: Brazil’s government said Friday that the sweeping 50% U.S. tariff on all Brazilian goods, announced earlier this week by President Donald Trump, is expected to have minimal effect on its 2025 economic growth.
The new tariffs, set to take effect August 1, will primarily impact certain manufacturing sectors, including aerospace and energy machinery. However, officials stressed that basic goods — such as oil, steel, beef, and coffee — which form the bulk of exports to the U.S., can be redirected to other global markets.
“Basic goods tend to be more easily redirected to other countries and regions,” Brazil’s finance ministry said, projecting that GDP growth would still reach 2.5% in 2025. Brazil expects only a slight slowdown in growth to 2.4% in 2026.
President Luiz Inácio Lula da Silva dismissed the move as political retaliation tied to legal proceedings against former President Jair Bolsonaro. “It is simply unacceptable,” Lula said, accusing Trump of defending a man “who tried to prepare my death.”
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Economic Policy Secretary Guilherme Mello emphasized that Brazil had diversified its trade partners, with China now accounting for 28% of exports, compared to 12% for the U.S. China also condemned the tariffs, calling them coercive and “unacceptable.”
In 2024, bilateral trade in goods between Brazil and the United States totaled approximately $92 billion, with U.S. exports to Brazil reaching $49.7 billion (up 11.3%) and imports from Brazil at $42.3 billion (up 8.3%). This yielded a U.S. trade surplus of $7.4 billion. Since 2020, the U.S. has consistently maintained a trade surplus with Brazil in goods—surpluses of approximately $15.5 billion in 2022, and $5.5 billion in 2023.
Brazil accounts for just over 1.2% of U.S. goods imports and 2.6% of exports in global trade.
Lula vs Bolsonaro: A History of Animosity
Lula narrowly defeated Bolsonaro in the 2022 presidential election, marking a political comeback after spending 580 days in prison on corruption charges that were later overturned by the Supreme Court.
Bolsonaro refused to concede immediately and repeatedly questioned the integrity of Brazil’s electronic voting system, fueling distrust among his supporters.
On January 8, 2023, thousands of Bolsonaro supporters stormed Brazil’s Congress, Supreme Court, and presidential palace, claiming the election was stolen.
Lula called it an attempted “coup” and blamed Bolsonaro for inciting the attack, though Bolsonaro was in Florida at the time.
Bolsonaro is now facing multiple investigations, including: Alleged coup plotting to overturn the 2022 election; unauthorized possession of official gifts, including jewelry received while in office, and falsifying COVID-19 vaccination records.
Lula’s administration supports the judicial inquiries, while Bolsonaro claims they are politically motivated “persecution.”