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10 Jul 2025 21:12
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  •   Home > News > International

    Donald Trump reveals 50pc tariff for Brazil among levies to be imposed on imports from August 1

    US President Donald Trump sends letters to more countries outlining new tariff rates that will come into effect next month unless they agree to new trade deals.


    Donald Trump is threatening a 50 per cent tariff on Brazil as he unveils a new tranche of levies on countries' goods from next month.

    The revised new rate for Brazil, a significant trading partner for the United States, is a dramatic escalation of the 10 per cent figure proposed in Mr Trump's first "Liberation Day" announcement of sweeping new tariffs in April.

    From August 1, imports from the countries will face levies unless they can cut a deal with the Trump administration.

    Each had faced the prospect of significant tariffs from July 9, but the implementation of the so-called reciprocal tariffs was delayed by three weeks.

    The Trump administration has sent letters to eight more countries, justifying the tariffs as a response to trade deals the White House says are unfair and "unfortunately, far from reciprocal".

    Among them, Mr Trump increased his proposed tariff rate on Brazil, after earlier saying the South American nation had "not been good to us, not good at all".

    He also ordered an unfair trade practices investigation that could lead to even higher tariffs.

    Brazil is Latin America's largest economy and a significant trading partner of the US, which in 2024 imported US$42.3 billion ($64.7 billion) in Brazilian goods, including oil, orange juice, coffee, iron, steel and other products.

    Mr Trump's letter said the 50 per cent tariff would be separate from all sectoral tariffs.

    It also expressed anger at the trial of former Brazilian president Jair Bolsonaro, who has been charged with trying to overturn his 2022 election loss.

    Mr Trump has described Mr Bolsonaro as a friend, and hosted him at his Mar-a-Lago resort when both were in power in 2020.

    "This trial should not be taking place," Mr Trump wrote in the letter posted on Truth Social.

    "It is a Witch Hunt that should end IMMEDIATELY!"

    Criticising what he said were Brazil's attacks on free elections and speech, and "SECRET and UNLAWFUL censorship orders to US social media platforms", Mr Trump also ordered the US Trade Representative's office to open an unfair trade practices investigation into Brazil's policies.

    More revised tariffs to come, Trump says

    Seven other nations face revised tariff rates, if they do not strike a deal with the Trump administration.

    • Sri Lanka — 30 per cent (was 44 per cent)
    • Philippines — 20 per cent (was 17 per cent)
    • Algeria — 30 per cent (unchanged)
    • Brunei — 25 per cent (was 24 per cent)
    • Iraq — 30 per cent (was 39 per cent)
    • Libya — 30 per cent (was 31 per cent)
    • Moldova — 25 per cent (was 31 per cent)

    Mr Trump said the tariff rates announced this week were based on "very, very substantial facts" and past history.

    For now, more than 20 countries have received letters, including key US allies Japan and South Korea, as well as Indonesia, Bangladesh and Thailand.

    [TABLE OF TARIFFS]

    If counterparts changed their trade policies, Washington might consider an adjustment to its stance, Mr Trump wrote.

    The latest developments in his tariff policy came after he announced fresh levies on copper and forecast higher tariffs on pharmaceutical imports to the US.

    Mr Trump delayed implementing his so-called Liberation Day tariffs amid reports from several US officials that a number of deals were close to being signed.

    He had wanted 90 deals in 90 days, but managed to seal only two — one with Vietnam and one with the United Kingdom.

    Asian nations with close links to China have so far been a major target of the US president's letters.

    However major trading partners, including the European Union, are yet to receive a letter.

    An EU spokesperson said on Wednesday that the bloc wanted to strike a deal with the US "in the coming days" and it had shown readiness to reach an agreement in principle.

    Mr Trump on Tuesday said he was "probably a day or two days off" from sending communications to the EU outlining new rates.

    Diplomats have said that negotiations for the 27-nation bloc could continue until August 1.

    The EU expects Mr Trump to keep a 10 per cent baseline tariff on its goods, with exemptions for critical sectors such as aeroplanes, spirits and cosmetics, diplomats told AFP this week.

    ABC/wires


    ABC




    © 2025 ABC Australian Broadcasting Corporation. All rights reserved

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