TARIFFS: Trump: US To Impose 50% Tariff Rate On Brazil, Sect 301 Investigation

US President Trump has announced the imposition of a 50% tariff rate on Brazilian imports effective August 1, per his post on Truth Social (link), triggering a 1.7% rise in USDBRL to the highest level in a month (5.6052). Brazil was initially assigned the baseline 10% reciprocal tariff, so 50% is a major escalation to one of the highest tariff rates imposed on any US trading partner. The letter also notes that the US will "immediately initiate" a Section 301 investigation (of unfair trade practices) of Brazil due to its alleged "continued attacks on the Digital Trade activities of American Companies". 

• The "letter" sent by President Trump to President Lula (posted on Truth Social) is not the usual boilerplate either, citing various political and trade grievances for the unusually high rate. Key portions of the letter below that differ from the largely identical letters sent to other countries:
• "The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace. This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY! Due in part to Brazil's insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans (as lately illustrated by the Brazilian Supreme Court, which has issued hundreds of SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms, threatening them with Millions of Dollars in Fines and Eviction from the Brazilian Social Media market), starting on August 1. 2025, we will charge Brazil a Tariff of 50% on any and all Brazilian products sent into the United States, separate from all Sectoral Tariffs. Goods transshipped to evade this 50% Tariff will be subject to that higher Tariff."
• "In addition, we have had years to discuss our Trading Relationship with Brazil, and have concluded that we must move away from the longstanding, and very unfair trade relationship engendered by Brazil's Tariff, and Non-Tariff, Policies and Trade Barriers. Our relationship has been, unfortunately, far from Reciprocal. Please understand that the 50% number is far less than what is needed to have the Level Playing Field we must have with your Country. And it is necessary to have this to rectify the grave injustices of the current regime. As you are aware, there will be no Tariff if Brazil, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely in other words, in a matter of weeks."
• "Additionally, because of Brazil's continued attacks on the Digital Trade activities of American Companies, as well as other unfair Trading Practices, I am directing United States Trade Representative Jamieson Greer to immediately initiate a Section 301 Investigation of Brazil."