Trump signs order to impose new 40% tariff on Brazil, bringing total rate to 50%

U.S. President Donald Trump on Wednesday signed an executive order implementing an additional 40 percent tariff on Brazilian goods, bringing the total tariff amount to 50 percent, the White House said in a fact sheet.

This rate of duty shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time seven days after the date of this order, except for certain specific goods, according to the executive order.

The White House claimed that the new tariff measure deals with "recent policies, practices, and actions by the Government of Brazil that constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States."

Recently, members of the Brazilian government have taken actions to "coerce U.S. companies to censor political speech, deplatform users, turn over sensitive U.S. user data, or change their content moderation policies on pain of extraordinary fines, criminal prosecution, asset freezes, or complete exclusion from the Brazilian market," according to the White House.

On July 9, Trump announced plans to impose steep tariffs on Brazil, linking the move to his opposition to former Brazilian President Jair Bolsonaro's trial for an alleged attempt to seize power after losing his reelection bid in 2022.

In mid-July, Washington suspended visas for eight Brazilian Supreme Federal Court justices overseeing Bolsonaro's trial.

Brazilian President Luiz Inacio Lula da Silva said on July 17 that Brazil would not tolerate foreign interference in its internal affairs, amid growing tensions with the United States over new tariffs and digital regulations.

"We won't accept interference from any foreign country," Lula said. He pledged a civil and democratic response, while announcing that U.S.-based digital platforms would be required to comply with Brazilian laws and pay taxes. He accused the companies of fueling disinformation and harming Brazilian society.

Brazil's Finance Minister Fernando Haddad said on July 21 that Brazil would negotiate with the United States over Trump's threat to impose 50 percent tariffs on imports from Brazil, noting that the Brazilian president wanted to keep diplomatic channels open.

Rui Costa, chief of staff of the Brazilian presidency, said on the same day that the country would respond calmly to Trump's tariff threat. "Brazil must act and continue to act with great serenity, despite all the signs of aggression, seeking diplomatic solutions and negotiations," Costa told reporters.

Brazil was also preparing contingency plans to support sectors most affected by the potential tariffs. Countermeasures included applying its economic reciprocity law to impose a matching 50 percent tariff on U.S. goods, along with economic support measures. In the meantime, Brazil was actively expanding trade partnerships within the Southern Common Market as part of its strategy to diversify economic ties, Costa said.