Name: WSJ Reporter on Why Trump's 50% Tariff Threat on Brazil is Different
Uploaded: 2025-07-10T09:56:00Z
Duration: 3 min 22 s
Description: After President Trump threatened a 50% tariff on Brazilian goods, WSJ Trade and Economic Policy Reporter Gavin Bade looks at how Trump is using tariffs to exert political control over other regions.

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After President Trump threatened a 50% tariff on Brazilian goods, WSJ Trade and Economic Policy Reporter Gavin Bade looks at how Trump is using tariffs to exert political control over other regions. Photo: Tom Brenner/Reuters

https://m.wsj.net/video/20250710/6adf7980-992f-4fa0-be4a-7d15c31a8d09/1/hls/manifest-hd-wifi.m3u8

After President Trump threatened a 50% tariff on Brazilian goods, WSJ Trade and Economic Policy Reporter Gavin Bade looks at how Trump is using tariffs to exert political control over other regions.

WSJ Reporter on Why Trump's 50% Tariff Threat on Brazil is Different

Trump majorly upped the ante in this latest round of his trade war. He sent a letter to the Brazilian government saying that on August 1st, they will be charged a 50% tariff on all of their exports that go to the US. This would majorly disrupt, if not decouple, a trading relationship with a nation that was the 16th largest US tradig partner.

Brazil, as an example, has been not good to us, not good at all.

So this letter was really unique from the almost two dozen letters that Trump has sent to different trading partners so far. And that's because of the motivations behind it. Trump in this letter really said that the Brazilian government were treating former President Jair Bolsonaro unfairly and engaging in a politically-motivated witch hunt. This is the first time in this round of tariff salvos that we've seen him go to bat for a political ally, rather than taking trade irritants into account principally.

He's doing a fantastic job, great job. Brazil loves him and the USA loves him.

So Trump and Bolsonaro have been very close allies in the Western Hemisphere, dating back to Trump's first term when Bolsonaro was first in office. They really both tried to steer their countries in a more right-wing populous direction. Bolsonaro right now is on trial for the events that led up to the Brazilian version of their storming of the Capitol. That is why Trump is finding some fellow feeling with him. Trump, of course, thinking that he was politically persecuted for, we can say, original insurrection here on the US Capitol. So we haven't heard from Bolsonaro yet on this. We have heard from Lula, the sitting president, who said, "We're not going to accept any sort of foreign interference or tutelage," he said, "from other nations." And I think you could see Lula reacting to this quite bitterly. He's always been a critic of US intervention in Latin America, and has not been shy to cozy up to other powers. One of the other wrinkles to this trade letter was Brazilian treatment of US tech firms. And Trump dinged the government for what he said were unfair fines and unfair legal cases in the Brazilian court system against US social media platforms. This would be companies like Meta for instance. And so, in this letter, Trump did an interesting thing. He said that he would also direct US Trade Representative, Jamieson Greer, to open a tariff investigation into unfair trade practices related to these digital policies in Brazil. The extent to which this is a negotiating tactic with the Brazilian government, and to the extent this is a punitive move, a penalty for how they're treating Bolsonaro, I think that is the big question here, right? Trump sees tariffs as more than just a trade and economic tool, they're his cudgel for political control and political influence, and really, political domination over other nations, no matter what the irritant is. He views these as a really blunt force to exert American control over entire regions and entire economies. And I think that we will see in months and years to come if he has overplayed his hand with that tool, because tariffs, of course, a double-edged sword.

Video from around the world on the latest news developments, with insight from Wall Street Journal editors and reporters. 

WSJ Reporter on Why Trump's 50% Tariff Threat on Brazil is Different

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