Key Points

In a letter posted on Truth Social and addressed to Lula, Trump wrote, "Witch Hunt that should end IMMEDIATELY!" CNN said the comment referred to Bolsonaro's ongoing trial in Brazil for allegedly attempting a coup after the 2022 elections.

In response, Lula posted on X, "Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage," adding, "Any measure to increase tariffs unilaterally will be responded to in light of Brazil's Law of Economic Reciprocity." According to CNN, this is the first time in months that a nation has threatened to match Trump's tariff measures.

Unlike 21 other countries that received similar tariff threat letters from Trump this week, Brazil ran a $6.8 billion trade surplus with the US in 2023. Top American exports to Brazil included aircraft, fuels, and industrial machinery. A retaliatory 50% Brazilian tariff could significantly hurt these industries, CNN noted.

CNN further reported that while Brazil has already been subject to a 10% tariff since April under Trump's "reciprocal" trade policy, the proposed 50% duty marks a sharp escalation. The deadline for reaching trade deals was initially set for July 10 but was extended to August 1.

Trump clarified in the letter that "there will be no Tariff if Brazil, or companies within your Country, decide to build or manufacture product within the United States." CNN noted that this language was nearly identical to what Trump used in other letters to foreign leaders this week.

CNN reported that the letters also went out to the Philippines, Sri Lanka, Moldova, Brunei, Algeria, Libya, and Iraq, with rates varying between 20% and 30%. The letter to Brazil, however, was unique in that Trump focused on domestic political developments rather than trade deficits.

"Trump has used similar tariff threats before," CNN noted, citing cases where he pressured Colombia, Mexico, and China over domestic and security-related policies, including migration and fentanyl production.

Bolsonaro, often called the "Trump of the Tropics," is currently on trial for allegedly plotting to overturn Brazil's 2022 election results. Prosecutors allege that the scheme even included plans to assassinate President Lula. Bolsonaro has denied any wrongdoing, CNN reported.

Meanwhile, Trump on Wednesday also announced a 50% tariff on copper imports effective August 1, citing national security concerns. "I am announcing a 50% TARIFF on Copper, effective August 1, 2025, after receiving a robust NATIONAL SECURITY ASSESSMENT," he posted on Truth Social, according to CNN.

"Copper is the second most used material by the Department of Defense! Why did our foolish (and SLEEPY!) 'Leaders' decimate this important Industry?" Trump said. "This 50% TARIFF will reverse the Biden Administration's thoughtless behaviour, and stupidity."

Copper prices surged over 13% on Tuesday following Trump's tariff warning, reaching a record high of $5.69 per pound, CNN said. While the market saw a slight correction on Wednesday, prices remained up nearly 3% in late trading.

However, analysts raised doubts about the impact of the copper tariff. "The US remains structurally short on copper, importing over 50% of its needs--primarily from South America--with no clear path to improving that for years to come," Ole Hansen of Saxo Bank told CNN. He warned that the move could make US manufacturing more expensive, calling it "a massive tax on consumers of copper."

China, a major copper refiner, pushed back against the national security rationale. "We have always believed that there are no winners in a trade war, and the abuse of tariffs is not in the interests of any party," Chinese foreign ministry spokesperson Mao Ning said on Thursday, according to CNN.

Trump's tariff campaign continues to send ripples across global markets and diplomatic circles. CNN reported that more tariff letters are expected in the coming days as Washington pressures countries to strike favourable trade deals under the looming August 1 deadline.

- ANI