Taking an extraordinary step, the United States is preparing an emergency declaration to justify imposing 50% tariffs on Brazilian goods. The move, which is set to take effect on August 1, marks a stunning escalation in trade tensions between the two countries.
The situation with Brazil stands out from past tariff battles under President Donald Trump’s administration, Bloomberg notes. Unlike other countries that run trade surpluses with the United States, Brazil operates under a trade deficit, adding complexity to Washington’s justification.
According to sources familiar with the matter, the office of the US Trade Representative is considering invoking emergency powers typically reserved for addressing serious threats to national security or public welfare. Such a declaration would grant the executive branch broad authority to act swiftly, experts point out.
Earlier in July, Trump announced a 50% tariff on Brazilian imports, accusing President Luiz Inácio Lula da Silva of conducting a "witch hunt" against former President Jair Bolsonaro. The latter faces charges in Brazil related to an alleged coup attempt.
The US Embassy had previously described the case against Bolsonaro as "political persecution," prompting Brazil's Ministry of Foreign Affairs to demand clarification from Washington.
