U.S. President Donald Trump singled out Brazil for import taxes of fifty per cent on Wednesday for its treatment of its former president, Jair Bolsonaro, showing that non-public grudges quite than easy economics were driving the U.S. leader’s use of import taxes.
Trump avoided his standard form letter with Brazil, specifically tying his tariffs to the trial of Bolsonaro, who’s charged with attempting to overturn his 2022 election loss. Trump has described Bolsonaro as a friend and hosted the previous Brazilian president at his Mar-a-Lago resort when each were in power in 2020.
“This Trial mustn’t be going down,” Trump wrote within the letter posted on Truth Social. “It’s a Witch Hunt that ought to end IMMEDIATELY!”
Trump also objected to Brazil’s Supreme Court fining of social media firms equivalent to X, saying the temporary blocking last yr amounted to “SECRET and UNLAWFUL Censorship Orders.”
Trump said he’s launching an investigation consequently under Section 301 of the Trade Act of 1974, which applies to firms with trade practices which can be deemed unfair to U.S. firms.
The Brazil letter was a reminder that politics and private relations with Trump matter just as much as any economic fundamentals. And while Trump has said the high tariff rates he’s setting are based on trade imbalances, it was unclear by his Wednesday actions how the countries being targeted would help to reindustrialize America.
Trump also sent letters Wednesday to the leaders of seven other nations. None of them — the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka — is a serious industrial rival to the US.
Most economic analyses say the tariffs will worsen inflationary pressures and subtract from economic growth, but Trump has used the taxes as a option to assert the diplomatic and financial power of the U.S. on each rivals and allies. His administration is promising that the taxes on imports will lower trade imbalances, offset a few of the cost of the tax cuts he signed into law on Friday and cause factory jobs to return to the US.
Trump, during a White House meeting with African leaders, talked up trade as a diplomatic tool. Trade, he said, “appears to be a foundation” for him to settle disputes between India and Pakistan, in addition to Kosovo and Serbia.
“You guys are going to fight, we’re not going to trade,” Trump said. “And we appear to be quite successful in doing that.”

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On Monday, Trump placed a 35 per cent tariff on Serbia, one in every of the countries he was using for instance of how fostering trade can result in peace.
Trump said the tariff rates in his letters were based on “common sense” and trade imbalances, though the Brazil letter indicated otherwise. Trump suggested he had not considered penalizing the countries whose leaders were meeting with him within the Oval Office — Liberia, Senegal, Gabon, Mauritania and Guinea-Bissau — as “these are friends of mine now.”
Countries are usually not complaining in regards to the rates outlined in his letters, he said, though those tariffs are near those announced April 2 that rattled financial markets. The S&P 500 index was up barely in Wednesday afternoon trading.
“We actually haven’t had too many complaints because I’m keeping them at a really low number, very conservative as you’d say,” Trump said.

Officials for the European Union, a serious trade partner and source of Trump’s ire on trade, said Tuesday that they are usually not expecting to receive a letter from Trump listing tariff rates. The Republican president began the strategy of announcing tariff rates on Monday by hitting two major U.S. trading partners, Japan and South Korea, with import taxes of 25 per cent.
Based on Trump’s letters, imports from Libya, Iraq, Algeria and Sri Lanka can be taxed at 30 per cent, those from Moldova and Brunei at 25 per cent and people from the Philippines at 20 per cent. The tariffs would start Aug. 1.
The Census Bureau reported that last yr that the U.S. ran a trade imbalance on goods of $1.4 billion with Algeria, $5.9 billion with Iraq, $900 million with Libya, $4.9 billion with the Philippines, $2.6 billion with Sri Lanka, $111 million with Brunei and $85 million with Moldova. The imbalance represents the difference between what the U.S. exported to those countries and what it imported.
Taken together, the trade imbalances with those seven countries are essentially a rounding error in a U.S. economy with a gross domestic product of $30 trillion.
The letters were posted on Truth Social after the expiration of a 90-day negotiating period with a baseline levy of 10 per cent. Trump is giving countries more time to barter along with his Aug. 1 deadline, but he has insisted there shall be no extensions for the countries that receive letters.
Maros Sefcovic, the EU’s chief trade negotiator, told EU lawmakers in Strasbourg, France, on Wednesday that the EU had been spared the increased tariffs contained within the letters sent by Trump and that an extension of talks until Aug. 1 would offer “additional space to achieve a satisfactory conclusion.”
Trump on April 2 proposed a 20 per cent tariff for EU goods after which threatened to boost that to 50 per cent after negotiations didn’t move as quickly as he would have liked, only to return to the ten per cent baseline. The EU has 27 member states, including France, Germany, Italy and Spain.
The tariff letters are worded aggressively in Trump’s type of writing. He frames the tariffs as an invite to “take part in the extraordinary Economy of the US,” adding that the trade imbalances are a “major threat” to America’s economy and national security.
The president threatened additional tariffs on any country that attempts to retaliate. He said he selected to send the letters since it was too complicated for U.S. officials to barter with their counterparts within the countries with recent tariffs. It may possibly take years to broker trade accords.
Japanese Prime Minister Shigeru Ishiba interpreted the Aug. 1 deadline as a delay to permit more time for negotiations, although he cautioned in remarks that the tariffs would hurt his nation’s domestic industries and employment.
Malaysia’s trade minister, Zafrul Aziz, said Wednesday that his country wouldn’t meet the entire U.S. requests after a Trump letter placed a 25 per cent tariff on its goods. Aziz said U.S. officials are in search of changes in government procurement, halal certification, medical standards and digital taxes. Aziz he indicated those were red lines.
Secretary of State Marco Rubio is ready to reach Thursday in Malaysia’s capital of Kuala Lumpur.