Overview

• President Donald Trump ordered a 50% tariff on all imports from Brazil effective August 1 and initiated a formal Section 301 probe into alleged unfair trade practices.
• The White House framed the sweeping duties as retaliation for what it called a “witch hunt” by Brazil’s judiciary against former President Jair Bolsonaro.
• Brazil’s Foreign Ministry summoned U.S. chargé d’affaires Gabriel Escobar and invoked its Economic Reciprocity Law to threaten matching duties if the U.S. measures proceed.
• Financial markets reacted sharply, with the Brazilian real tumbling more than 2% against the dollar and stock indices slipping on trade escalation fears.
• As of July 11, Brasília is seeking direct talks with Washington, preparing WTO legal challenges and readying reciprocal tariffs should negotiations fail.