Overview

• President Trump’s letter on Truth Social threatened 50% duties on Brazil’s exports to pressure Lula over Bolsonaro’s trial.
• President Lula signed a decree forming an interministerial committee chaired by Vice President Geraldo Alckmin to plan countermeasures.
• The committee will operate under Brazil’s Economic Reciprocity Law, enabling identical tariff measures against U.S. goods.
• Members of Bolsonaro’s inner circle said they were stunned by broad tariffs after anticipating sanctions targeting just one Supreme Court judge.
• The threatened duties have boosted Lula’s domestic standing by uniting voters through a patriotic “Brazil belongs to Brazilians” campaign.