Overview

• President Trump tied punitive 50% tariffs on all Brazilian imports to the prosecution of former President Jair Bolsonaro and alleged unfair trade practices, effective August 1
• Brazil has convened interministerial meetings and industry discussions to draft reciprocal tariffs under its Economic Reciprocity Law
• The United States Trade Representative launched a broad investigation into Brazil’s digital trade, payment systems, preferential tariffs, environmental measures and intellectual property protections
• President Lula condemned the tariff threat as “unacceptable blackmail” and reaffirmed the independence of Brazil’s judiciary in Bolsonaro’s trial
• Both governments say they remain open to negotiations, but no high-level talks have been scheduled before the looming deadline