US Slaps Brazil with Hefty Tariffs, Citing “Misuse of Democracy”

New levies to take effect August 7, impacting key exports

The United States is imposing significantly increased tariff rates on numerous trading partners, with the new measures set to begin on August 7, a delay from the initially announced August 1 deadline.

Brazil Faces 50% Tariffs Amidst Political Fallout

Brazil, South America’s largest economy, will see a 50% tariff on its exports to the U.S. While significant exemptions exist for crucial products like aircraft and orange juice, the move signals a strong geopolitical stance.

President Trump has explicitly stated his intention to punish Brazil for prosecuting his political ally, former President Jair Bolsonaro. Bolsonaro faces accusations of plotting a coup to retain power, a case Trump has labeled a “witch hunt.”

Geopolitical Tool in Action

According to Greer, it is not uncommon for Trump to utilize tariffs as a tool for geopolitical objectives.

“The president has seen in Brazil, like he’s seen in other countries, a misuse of law, a misuse of democracy. It is normal to use these tools for geopolitical issues.”

—Greer

Greer added that Trump was elected to “assess the foreign affairs situation … and take appropriate action.”

Tariffs Largely Finalized, White House Confirms

White House economic advisor Kevin Hassett indicated that while discussions with some nations will continue, the majority of the tariff rates are “more or less locked in.” He dismissed the possibility of changes based on market reactions.

“I would rule it out, because these are the final deals.”

—Kevin Hassett, White House economic advisor

The implementation of some of Trump‘s tariffs has faced legal challenges, with arguments that he has overstepped his executive authority. An appeals court panel recently expressed skepticism toward the government’s arguments, suggesting the case could reach the Supreme Court.