How Trump's high tariffs against Brazil could backfire |
The newly announced tariffs by the US government on Brazilian imports, as well as Washington's move to sanction Brazilian Supreme Court Justice Alexandre de Moraes "for serious human rights abuse," has caused a strong reaction in Brazil.
Brazilian President Luiz Inacio Lula da Silva has condemned American interference in the Brazilian legal system, calling it "unacceptable." The political motivation behind these measures undermines Brazil's sovereignty and threatens the relationship between the two countries, Lula said.
From August 6, the US will impose tariffs of 50% on Brazilian imports into America. Somewhat surprisingly, around 700 Brazilian products were exempted. But experts have said this still puts the average tariff on Brazilian goods at around 30%. The European Union and Japan are only paying 15% tariffs.
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The US government, under President Donald Trump, has justified its new global tariffs by blaming a bilateral trade imbalance. The Trump administration has also given the prosecution of former President Jair Bolsonaro as an explanation for the punitive tariffs. Judge de Moraes is presiding over the trial of Bolsonaro, who is accused of masterminding a plot to stay in power despite his 2022 election defeat.
The personal sanctions on de Moraes come under the US' Magnitsky Act, which allows the American government to sanction foreign government officials worldwide for human rights offenses. Among other things, de Moraes could see any assets he has in the US frozen. The........