Why Trump’s tariffs and sanctions on Brazil are shaking global diplomacy

Why Trump’s tariffs and sanctions on Brazil are shaking global diplomacy

The United States imposed sweeping 50% tariffs on Brazilian exports on Wednesday, two days ahead of schedule, while also sanctioning a sitting Supreme Court justice, Alexandre de Moraes. The twin moves mark a dramatic escalation in tensions between President Trump and Brazilian President Luiz Inácio Lula da Silva, amid deepening disputes over trade, democracy, and the fate of former president Jair Bolsonaro, the New York Times reported.

Bolsonaro case drives Washington’s actions

At the heart of the rift is Trump’s defence of Bolsonaro, accused in Brazil of orchestrating a failed coup after losing the 2022 elections. Trump claims the charges are politically motivated. The White House used emergency authority to impose Magnitsky Act sanctions on Justice Moraes, accusing him of human rights abuses and censorship of conservatives. Brazil’s government has dismissed the allegations, calling them interference in a sovereign judiciary.

Brazil considers retaliation, urges trade talks

President Lula, in a Tuesday interview with The New York Times, warned of possible retaliatory tariffs. But after Trump’s surprise move, Lula stopped short of escalating further, instead calling the sanctions “unacceptable” and pushing for dialogue. With the US being Brazil’s second-largest trading partner, a full-blown trade war would hurt both economies, especially in key sectors like agriculture and manufacturing.

Limited impact—yet strong symbolism

Though the tariffs are the highest announced by Trump this year, they leave out vital Brazilian exports like orange juice, aircraft, and energy products. According to the American Chamber of Commerce in Brazil, over 40% of Brazilian exports to the US are exempt. But the message from Washington is clear: support for Bolsonaro comes at a cost, and legal proceedings against him will be watched closely.

Judicial sanctions spark outrage in Brazil

The sanctions freeze any US assets of Justice Moraes and ban him from entering the country. Brazil’s Supreme Court hit back, defending Moraes’s role in protecting democracy and prosecuting what it called a “serious attack” on the nation’s institutions. Moraes is seen as both a hero and a lightning rod—lauded for fighting anti-democratic forces, but criticized for authoritarian overreach, such as ordering tech platforms to block right-wing accounts.

Political fallout on both sides

Bolsonaro allies in Brazil welcomed the move. His son, Eduardo Bolsonaro, called it “historic” and thanked Trump and Senator Marco Rubio for their support. Meanwhile, opposition lawmakers in Brazil and human rights activists warned the US actions risk undermining judicial independence and emboldening extremists. The Biden-era norms of non-intervention have been tossed aside as Trump signals full alignment with Bolsonaro’s populist agenda.

An economic and political gamble

The US had a $7.4 billion trade surplus with Brazil last year, and many American consumers rely on Brazilian coffee, beef, and other staples. While the tariffs may not immediately hit wallets, their long-term impact could increase prices or disrupt supply chains. For Trump, it’s a calculated gamble: backing a controversial ally, applying maximum pressure, and reasserting influence in Latin America—just as Bolsonaro prepares to face trial for his alleged crimes.