US President Donald Trump plans to impose a 50 percent tariff on Brazilian products on August 1.

Trump has set minimum tariffs on imported products, ranging from 20 percent to 50 percent, depending on the country.

Tariffs are paid by the importer, not the exporter.

In a letter sent to his Brazilian counterpart, Luiz Inácio Lula da Silva, Trump accused Brazil of "attacks" on US technology companies and of persecuting the former Brazilian president, Jair Bolsonaro, who faces a lawsuit for an alleged coup attempt after the elections held in 2022 that brought Lula back to the government.

Lula has responded that the increase will be reciprocal and has warned Trump about his interference in the country's judicial system.

Brazil plans to respond to the 50 percent 'tarifazo' with the Economic Reciprocity Law, proposed this April by Lula and supported by the Brazilian Congress. The law establishes criteria for suspending trade concessions, investments, and obligations related to intellectual property rights in response to unilateral measures adopted by a country or economic bloc that negatively impact Brazilian international competitiveness.

"In this regard, any unilateral tariff increases will be governed by Brazil's Economic Reciprocity Law. Sovereignty, respect, and unwavering defense of the interests of the Brazilian people are the values that guide our relationship with the world," Lula said.

Trump's letter cites that the trade relationship between the South American giant and the US is "unfair."

“I knew and dealt with former President Jair Bolsonaro, and respected him greatly, as did most other Leaders of Countries,” Trump wrote. “The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace. This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!”

Since 2009, Brazil has posted trade deficits with the US, with Brazil spending more on imports than it has collected from exports.

Throughout this period, American sales to Brazil exceeded imports by US$90.28 billion (R$493 billion) through July 2025.

A version of this story appeared on our Spanish publication