U.S. Escalates Direct Intervention in Brazil's Internal Affairs…"50% Tariff in 'Witch Hunt' Against Former President"

U.S. President Donald Trump, who is waging a global trade war, declared that he would impose high tariffs on Brazil because the country's political situation did not align with his views. By leveraging America’s economic power, he is expanding his political influence and is now overtly intervening in the internal affairs of other countries. Concerns are growing that President Trump, who has tested the limits of his power since launching his second term with the aim of "managing America and the world," is crossing new boundaries.

Backing Election Fraud Claims with Tariffs

On the 9th (local time), President Trump revealed a letter on social media notifying Brazil that a 50% tariff rate would be applied starting August 1. This rate is five times higher than the 10% tariff previously announced on April 2.

He also disclosed letters sent to seven other countries, including the Philippines and Iraq, but noted that the content of Brazil’s letter was different. In the letter to Brazil’s current President Luiz Inácio Lula da Silva, Trump labeled former President Jair Bolsonaro (2019–2022) a "globally respected leader" and called the trial against him an "immediate stop witch hunt." He explained that the reason for the 50% tariff was "due to the insidious attack on Brazil’s free elections and basic rights of freedom of expression in the United States."

In Brazil’s 2022 presidential election, Lula narrowly defeated former President Bolsonaro by 1.8 percentage points. Following the election, Bolsonaro supporters, claiming electoral fraud, stormed the presidential palace, parliament, and supreme court—events reminiscent of the U.S. Capitol breach on January 6, 2021, by Trump supporters. Prosecutors in Brazil indicted Bolsonaro on allegations of plotting Lula’s assassination and planning a military coup. Nevertheless, President Trump claimed these actions brought "international disgrace" to Brazil and reinforced claims of electoral fraud.

As allegations of election fraud spread on social media, the Brazilian government demanded deletion of related accounts citing social unrest, but X (formerly Twitter) refused. In August last year, Brazil’s Supreme Court issued a temporary order blocking access to X. This is the context in which Trump cited "America’s basic freedom of expression" as a reason for imposing tariffs. President Trump also instructed Jamieson Greer, the United States Trade Representative (USTR), to investigate whether Brazil had violated Section 301 of U.S. trade law.

President Lula responded, "Brazil is a sovereign nation with independent institutions and will not accept control from anyone." The market reacted sensitively to the attack on Brazil, the largest economy in South America. Following the public announcement of Trump’s letter, the Brazilian real plunged 2.3% against the dollar. The Bovespa Index futures, Brazil’s main stock market index, also declined.

'Freedom of Expression' Used as a Pretext for Attacks

While the Trump administration champions "America First," it also harbors ambitions to spread Trumpism globally—a stance somewhat at odds with its stated policy. Trump’s cabinet members are actively participating in international political events such as various Conservative Political Action Conference (CPAC) gatherings, endorsing right-wing politicians and criticizing their opponents. U.S. Vice President J.D. Vance, at the Munich Security Conference in Germany this February, warned that Europe’s true enemies are "internal" rather than China or Russia, and stated that if Europe fails to align with President Trump’s values, the strength of the alliance could change.

Kristi Noem, U.S. Secretary of Homeland Security, also voiced support for the anti-European Union presidential candidate at the CPAC event in Warsaw, Poland, and criticized the opposing candidate as a "socialist."

They particularly label the suppression of far-right political activities in other countries as "violations of freedom of expression" to justify their intervention. They are also highly sensitive to the political impact of increased regulations on U.S. big tech companies such as Google, Meta, and X.

EU: 'Negotiations Could Be Concluded Soon'

Market attention is also turning to the EU and India, where deals are reportedly close. According to Reuters, EU Commissioner for Trade Maroš Šefčovič announced that "there has been good progress in the trade agreement framework" and expressed optimism that negotiations might be concluded within days.

Negotiations with India are also in the final stages. However, President Trump recently threatened to impose an additional 10% tariff on India for participating in BRICS efforts to create an alternative to the dollar. The Indian government, while assuring the U.S. that it does not support a BRICS single currency, argues that trading with China in local currencies does not amount to de-dollarization. According to Bloomberg News, India is waiting for a response after offering the U.S. its best proposal.

Meanwhile, President Trump also announced that itemized tariffs on copper, for which he had forecast a 50% tariff rate the previous day, would be implemented starting August 1. The Yale Budget Research Institute assessed that the effective tariff rate in the U.S. has risen to 17.6%, the highest level in 90 years.

Washington – Lee Sang-eun, Correspondent