Lula said that Brazil is planning to appeal to the World Trade Organisation and propose international investigations into Trump tariffs and “demand explanations” from the US government over its trade measures read more

Brazilian President Luiz Inacio Lula da Silva has threatened to impose a 50 per cent tariff on all US goods after his American counterpart, Donald Trump, announced 50 per cent duties on all its exports.

“If he charges us 50 per cent, we’ll charge him 50 per cent,” Lula told local news outlet Record. Trump on Thursday announced a 50 per cent tariff on Brazilian goods, accusing the current government in the country of running a “witch-hunt” against its former president Jair Bolsonaro. The leader is facing trial over his attempt to overturn his 2022 election defeat.

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Lula further said that Brazil is planning to appeal to the World Trade Organisation and propose international investigations into Trump tariffs and “demand explanations” from the US government over its trade measures.

Early Thursday, Lula met with Brazilian ministers to discuss how to respond to Trump’s 50 per cent tariff threat. According to his chief of staff’s office, a study group will be formed to determine the government’s next steps.

Meanwhile, Trump has already pledged to take action if Brazil retaliates against his tariffs. “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 50% that we charge,” he wrote in a letter to Lula.

The 50 per cent US tariff on Brazilian goods will take effect August 1, Trump said in his letter, mirroring a deadline that dozens of other economies face.

On the same date, a 50 per cent tariff on US imports of copper, a key metal used in green energy and other technologies, will take effect.

Trump’s message to Lula was the latest in more than 20 such letters the US president has released since Monday, after repeatedly threatening to simply decide a rate for countries as negotiations continue over his elevated “reciprocal” tariffs.

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Brazil had not been among those threatened previously with duties above a 10 per cent baseline, and the United States runs a goods trade surplus with Brazil.

With inputs from agencies

President Trump is pushing through with his tariff agenda, unveiling a new batch of letters to country leaders outlining tariffs on goods imported from their countries beginning in August and a warning to BRICS nations.

In a letter posted to Truth Social late on Thursday, Trump has announced a broad 35% tariff on Canadian goods, claiming that the US’s northern neighbor had “financially retaliated” to the duties announced earlier in the year. Trump doubled down on the economic threats by saying that any fiscal retort from Canada will be tacked onto the 35% set to take effect Aug. 1.

Trump did not indicate whether a current tariff exclusion for USMCA-compliant goods would continue to apply post-August.

In an interview with NBC News published late Thursday, Trump also floated 15% to 20% blanket tariffs on most trading partners, higher than the 10% level currently in effect.

Looking back across a busy week, Trump levied a 50% tariff on goods from Brazil, citing its treatment of former President Jair Bolsonaro, now on trial in Brazil’s Supreme Court on charges that he plotted a coup in 2022. It came as part of a barrage throughout the week, with Trump setting tariff rates of 20% to 40% on over 20 trade partners.

Meanwhile, Trump injected fresh uncertainty into the metal market this week, confirming 50% copper import tariffs from Aug. 1 to match steel and aluminum. He also suggested a 200% pharmaceuticals tariff down the line.

Elsewhere, China warned Trump on Tuesday against restarting trade tensions and that it would hit back at countries that make deals with the US to exclude China from supply chains.

Here is where things stand with various other partners:

Vietnam: A deal with Vietnam will see the country’s imports face a 20% tariff — lower than the 46% Trump had threatened in April. He also said Vietnamese goods would face a higher 40% tariff “on any transshipping” — when goods shipped from Vietnam originate from another country, like China.

European Union: The EU has signaled it is willing to accept a 10% universal tariff on many of its exports but is seeking exemptions for certain sectors. The bloc is racing to clinch a deal this week.

Read more: What Trump’s tariffs mean for the economy and your wallet

Here are the latest updates as the policy reverberates around the world.

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Copper traders look to Chinese buyers in post Trump-tariff world Global copper traders are now shifting from the US and offering cargoes of copper to Chinese buyers as they look to offload metal no longer able to reach the US before President Trump’s 50% tariff deadline kicks in. Reuters reports: Read more here.

Trump copper tariffs could help Antofagasta’s stalled US project: CEO For one company, President Trump’s tariffs might not be such a bad thing. Chilean copper miner Antofagasta (ANFGF) said on Thursday that it sees an opportunity for its stalled copper project in the United States following the Trump administration’s move to impose 50% import tariffs on the metal, CEO Ivan Arriagada said on Thursday. Reuters reports: Read more here.

Trump’s Brazil tariffs gift Lula surprise tailwind for 2026 vote For months, Brazil flew under President Trump’s tariff radar, but in recent weeks, Trump has posted on Truth Social about the treatment of former Brazilian President and ally Jair Bolsonaro. Brazil avoided Trump’s tariffs until Wednesday, when Trump threatened to slap 50% tariffs on Brazil imports into the US. Now in the spotlight, could President Luiz Inacio Lula da Silva benefit from the attention? Bloomberg News reports: Read more here.

Brazil scrambles to respond to Trump’s 50% tariffs Reports out of Brazil have said the country scrambled to respond to President Trump’s announcement of 50% tariffs on Brazilian exports. The government was caught on the hop with President Luiz Inacio Lula da Silva bringing together an urgent cabinet meeting on Thursday as officials worked to de-escalate the crisis. Reuters reports: Read more here.

US coffee, orange juice prices could surge if Trump’s Brazil tariffs stick US consumers will soon face a sharp rise in food staples like coffee and orange juice if the Trump administration sticks to its 50% tariffs on all imports from Brazil, according to a statement from traders and experts on Thursday. Reuters reports: Read more here.

Conagra says tariff costs will hit annual profit Reuters reports: Read more here.

German exporters don’t want US trade deal ‘at any price’: Trade group German exporters have come out fighting against President Trump and said they won’t settle for just any trade deal with the US. Dirk Jandura, head of the BGA trade lobby said they want a “fair deal” for the whole of Europe. Reuters reports: Read more here.

Coffee prices climb after Donald Trump threatens 50% tariffs on Brazil Coffee futures (KC=F) rose on Thursday after President Trump threatened to slap a 50% tariff on Brazil, the world’s largest producer. The news has shaken the industry and risks US consumers seeing a price surge. The FT reports Read more here.

Hasbro’s CEO: Toy prices could start to rise in the fall because of tariffs Trouble may be on the horizon for US toymakers as Hasbro (HAS) CEO Chris Cooks said toy prices will likely rise later this year, especially if higher tariffs take effect. CNN reports: Read more here.

Trump promised 200 deals by now. He’s gotten 3, and 1 more is getting very close President Trump made a statement as his first 100 days in office came to a close in late April, he said he had completed trade deals with 200 countries. Two months on and Trump has announced just three of those agreements, which include a trade truce and framework with China and deals with the UK and Vietnam. So what happened? CNN reports: Read more here.

Trump pushes 50% copper tariff to come into effect August 1 President Trump has announced a 50% tariff on all copper imports to the US to come into effect on August 1, following through with statements earlier this week. Posting on Truth Social, the president said: About half of the copper used in the US is imported, with the vast majority coming from Chile, according to Reuters. The other half is domestically mined and processed, with a significant portion coming out of Arizona. At this time, Trump has not indicated plans to increase domestic production, nor shown a road map around how the metal, essential in electronics across a number of industries, will be sourced for usage.

Trump comes to Bolsonaro’s defense in tariff letter imposing 50% duties on Brazil President Trump added Brazil to the list of countries receiving tariff letters today, though he diverged from the usual template. Instead of citing the US’s trade imbalance, Trump issued the letter in service of former President Jair Bolsonaro, who is facing charges of planning a coup after he lost the 2022 election and potentially prison time if convicted by Brazil’s Supreme Court. “The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace,” Trump wrote in the letter. “This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!” Trump stated that starting Aug. 1, imports from Brazil to the US will face a 50% tariff. In another divergence from recent tariff announcements, which have largely tracked “Liberation Day” tariffs, the 50% rate on Brazilian goods is far higher than the 10% announced in April. Brazil previously had a lower tariff rate because it is one of the few countries with which the United States has a trade surplus. In the first three months of the year, the US exported $650 million more in goods to Brazil than it imported.

Presidents of Mexico, Chile respond to Trump’s copper tariff announcement Mexico’s President Claudia Sheinbaum said on Wednesday that the country could redirect the copper it sends to the US to other markets to avoid potential tariffs from the Trump administration. Meanwhile, Chilean President Gabriel Boric called for “official” communication on the copper tariffs Trump mentioned during a Cabinet meeting on Tuesday. Reuters reports: Read more here.

Trump posts new batch of tariff letters President Trump promised seven letters today. Late this morning, he posted to: Philippines Brunei Moldova Algeria Iraq Libya Sri Lanka Most are roughly in line with duties he announced on “Liberation Day.” You can see a full breakdown of the new tariffs Trump has announced here (remember, these are announced, but they take effect Aug. 1):

Trump’s BRICS warning to India adds new twist to possible trade deal President Trump is hoping to reach a trade deal with India, touting the potential for months since his April tariff pause. But the latest twist in the president’s topsy-turvy trade policy, which he himself introduced this week, could complicate things. Bloomberg reports: Some added intrigue: India will assume BRICS chairmanship next year. Read more here.

Trump delayed reciprocal tariffs after Bessent wanted more time on deals President Trump decided to delay his reciprocal tariffs to Aug. 1 after discussions with Treasury Secretary Scott Bessent. Bessent and others told the president that he could get trade deals with more time, according to an exclusive report in the Wall Street Journal on Wednesday. Bessent and other advisers within the Trump administration felt that they were making progress on several deals with trading partners, which included India and the European Union. An initial pause on the reciprocal tariffs was set to lapse at 12:01 a.m. Wednesday until Trump on Monday further postponed the implementation date for three weeks and sent out letters warning countries of the rates they would face on that day. Trump had talked about ending tariff deals and letting the tariffs take effect. But after Bessent told him some deals were nearly done, but needed more time, Trump changed his mind. Bessent was also the one who convinced Trump to pause his April ‘Liberation Day’ tariffs for 90 days after they shook global markets. As a result, Trump sent out letters along with the delay as a negotiating tactic to salvage last-minute concessions from trading partners, according to the WSJ report. On Tuesday, Trump reinforced his copper tariff threat — which he initially introduced in February, and said that he would impose 50% tariffs on copper and up to 20%% tariffs on pharmaceuticals. Trump went further on Tuesday evening by saying he will be releasing more letters on Wednesday. “We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon. Thank you for your attention to this matter!” Trump also said it would be impossible for every country to get a deal to avoid reciprocal tariffs. “We got 200 countries. We can’t meet with 200 countries,” he said during the meeting.

EU is pushing for early US tariff relief, ‘stand-still’ clause: Senior lawmaker The European Union may be getting closer to securing a trade agreement with the United States, according to the the head of the European Parliament’s trade committee. But the trade bloc is struggling to obtain immediate tariff relief and a commitment from the US not to introduce new measures. European Commission President Ursula von der Leyen also said on Wednesday that it is working closely with President Trump’s administration to reach a deal. “We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios,” von der Leyen told the European Parliament. Reuters reports: Read more here.

US used car prices surge as tariffs drive market volatility Reuters reports: Read more here.

Trump promises more tariff letters and warns BRICS of what’s coming President Trump took to Truth Social again on Tuesday and amped up his trade threats, promising to unveil tariffs on at least seven countries on Wednesday. He posted: “We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon.” Commerce Secretary Howard Lutnick told CNBC earlier on Tuesday that 15 to 20 letters are expected to be sent over the next two days. The latest warning came as Trump vowed to put a 10% levy on imports from BRICS nations on Monday. He also revealed plans for a 50% tariff on copper imports and a 200% import tax on pharmaceuticals. The US president posted 14 letters on Truth Social that he had sent to countries on Monday, including South Africa, Malaysia, and Thailand, outlining tariffs ranging from 25% to 40%. This message was reinforced on Tuesday with Trump saying that there will be no extensions and payments will be due on Aug. 1. CNN reports: Read more here.

Trump’s copper tariff threats are already raising factory costs President Trump said he plans to place hefty import tariffs on copper (HG=F) and it has already started to cause a spike in costs for American factories, with New York futures trading 35% up year to date and 25% higher than other global benchmarks on Tuesday. On Wednesday, COMEX copper (HG=F) futures fell 2.7% to $5.49, as traders reacted to Trump’s copper tariff threat. Trump announced on Tuesday, that he planned to place a 50% tariff on copper imports, reinforcing his first threat made in February to impose targeted levies on the industrial metal. Over the last few months, the price of copper in New York has risen as buyers have raced to stock up before levies are imposed. Input costs for American manufacturers have also surged above prices that their rivals pay in the rest of the world. The disconnect reached unprecedented levels on Tuesday, as Comex futures spiked to trade at a 25% premium to the global benchmark set in London. “Any restrictions on US imports of copper cathode would merely redirect copper supply to China,” a representative for top US copper importer Southwire Company LLC said in April in written comments to the US Commerce Department, which at Trump’s request had been investigating whether to impose levies. “At the same time, US copper producers would face significant shortages of supply, particularly in the short- and medium-term, as US copper production cannot increase fast enough to fill the supply gap.” Bloomberg News reports: Read more here.

Brazil’s President Luiz Incio Lula da Silva threatened that his country will respond with equal force after US President Donald Trump imposed steep tariffs on Brazilian goods.

“We’ll first try to negotiate, but if there’s no negotiation, the law of reciprocity will be put into practice,” Lula said in an interview with Record TV, citing a law Congress recently passed giving the president powers to retaliate against trade barriers. “If they’re going to charge us 50, we’ll charge them 50.”

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He made the statement just a day after Trump announced 50% tariff on Brazilian exports, blaming Brazil for what he called a “witch-hunt” against Jair Bolsonaro, the former Brazilian president. Bolsonaro is currently on trial for allegedly trying to overturn the results of the 2022 presidential election.

Lula also said that Brazil might turn to the World Trade Organisation (WTO) to resolve the matter. “We could ask for international investigations and demand explanations,” he said. Lula stressed that Brazil has a legal tool ready to respond — the Reciprocity Law, recently passed by Brazil’s Congress. “But the main thing is the Reciprocity Law,” he added.

He refuted Trump’s claim that the economic ties between Brazil and the United States were unfair. “Trump’s statement that our relationship is far from reciprocal is inaccurate,” Lula said in a separate statement issued Wednesday.

TARIFFS TO TAKE EFFECT ON AUGUST 1

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Lula held an emergency meeting with his ministers early Thursday to plan Brazil’s response. His office later confirmed that a study group would be created to analyse how to react to Trump’s proposed tariff.

The proposed US tariffs on Brazil are part of Trump’s trade strategy revealed this week. Although the White House had planned to raise tariffs on several countries on Wednesday, Trump delayed the increase until August 1. This gives the countries some time to respond or negotiate.

Trump has already sent letters to leaders of other countries — including Japan, Bangladesh, and South Korea — warning them of possible tariff hikes unless they agree to trade deals with the US. In his letter to Lula, which was posted on social media, Trump said that any retaliation by Brazil would lead to even higher tariffs.

“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 50% that we charge,” Trump wrote.

The tension between the two leaders adds to growing concerns about a possible trade war between the US and Brazil, Latin America’s largest economy.

– Ends

With inputs from Agencies

Brazil’s President Lula da Silva said he would retaliate if President Donald Trump imposed 50% U.S. tariffs. The Planalto Palace / Public Domain

U.S. President Donald Trump announced this week his intention to impose a 50% tariff on all Brazilian imports, sparking an immediate and defiant response from Brazil’s President Lula Da Silva. The proposal, widely seen as an overtly political maneuver, threatens to upend trade ties between the two largest economies in the Western Hemisphere, sending shockwaves through international markets and diplomatic circles alike.

Lula challenges Trump over trade threats and Bolsonaro Ties

“Brazil has not been fair to the U.S. We’re not going to let it continue. There must be consequences for how they’ve treated a great man, Jair Bolsonaro, and how they’ve treated us in trade,” said President Trump during a campaign rally in Miami. Trump’s statement has been seen as a dangerous turn toward retaliatory protectionism.

In response, Brazilian President Luis Inacio Lula da Silva did not mince words. “Brazil Will not be blackmailed. If the United States raises tariffs on Brazilian goods, we will respond in kind-quickly and proportionally,” he stated.

Lula’s government announced–within hours of Trump’s declarations–that the government was invoking provisions under the Economic Reciprocity Law, allowing Brazil to impose mirror tariffs on U.S. exports. The Economic Reciprocity Law basically authorizes the government to impose retaliatory tariffs on nations that target Brazilian exports unfairly.

The Ministry of Foreign Affairs has already begun drafting a countermeasure list, targeting American agricultural exports, industrial machinery, and technology products, key sectors of the U.S. economy and political sensitive regions in swing states. Lula made clear that if the U.S. follows through with Trump’s proposal, Brazil will respond with equivalent tariffs.

In a nationally televised address from Brasilia, Lula condemned Trump’s move as an “unacceptable act of political interference” and warned that Brazil will not hesitate to defend its sovereignty. We are not a colony. Brazil will not be intimidated by threats, whether economic or ideological,” said Lula in a defensive tone. He accused Trump of using foreign policy as a personal tool to protect allies and undermine independent judicial systems abroad.

Trump’s public defense of Bolsonaro, Brazil’s controversial former president and Trump ally – earning Jair Bolsonaro the nickname ‘the Trump of the Tropics’ – was not lost on observers. The Trump campaign has criticized the Lula administration for what it calls “political persecution” of Bolsonaro, who faces legal consequences over his role in the January 2023 Brasilia riots and other alleged abuses while in office. But the tariff threat marks a dramatic departure from diplomatic norms, leveraging international trade policy to intervene in a sovereign country’s legal proceedings.

In political terms, Lula’s reaction may also serve as a strategic counterpunch. With Brazil’s 2026 presidential race beginning to take shape, the president has used the moment to assert his leadership on the world stage and rally domestic support by standing firm against what many perceive as bullying by a foreign leader. The administration has also indicated it is preparing to escalate the matter through international legal channels, including a potential filing with the World Trade Organization if the tariff threat becomes policy.

While the White House has yet to comment in detail on Trump’s remarks, U.S. trade officials privately expressed concern about the potential fallout. Brazil is one of the largest economies in the Southern Hemisphere and a key trading partner for the United States, especially in the agricultural and energy sectors. Any disruption in that relationship could have ripple effects across global markets.

Financial indicators have already begun reacting

Financial indicators have already begun reacting. The Brazilian real dipped slightly following Trump’s announcement, and Brazil’s central bank signaled it was monitoring the situation closely. Meanwhile, investors began pricing in risks to key sectors, with shares of Brazilian exporters and U.S. multinationals doing business in Latin America falling modestly. Trump’s announcement has triggered uncertainty among traders.

Brazil’s equity markets also took a hit. Shares of major exporters, particularly in agribusiness and aerospace, saw immediate selloffs. Embraer, the Brazilian aircraft manufacturer that depends heavily in U.S. sales and joint ventures, saw its stock dip nearly 4% in afternoon trading. Petrobras, Brazil’s state-run oil company, also saw modest losses as investors braced for a potential indirect fallout, especially if retaliatory tariffs lead to secondary sanctions or supply chain disruptions.

Commodities markets were equally unsettled. Coffee and orange juice features surged on American exchanges amid fears that supply chains could be disrupted if tariffs go into effect. Brazil is the world’s largest exporter of coffee and a dominant player in citrus, and U.S. importers may be forced to find alternative sources, at higher prices. Analysts have also flagged the possibility of inflationary pressure in the U.S. consumer goods market if Brazilian agricultural and industrial inputs become more expensive or restricted.

Investor sentiment is being further shaken by speculation that Brazil’s central bank may have to intervene to stabilize the real if currency pressure continues, particularly if market volatility intensifies as the 2026 presidential election heats up.

Though no formal downgrades have been announced, several international banks have already revised their short-term outlook for Brazilian assets to “underweight” due to rising political and trade uncertainty. For now, the early market movements reflect real concerns about a return to unilateral, unpredictable trade policy under Trump’s presidency despite Lula’s firm message that Brazil will not be used as a pawn in another country’s political game, no matter who sits in the Oval Office.

Brazil’s Lula warns of 50% tariffs on U.S. goods after Trump trade threat

toggle caption Dado Galdieri/Bloomberg via Getty Images

RIO DE JANEIRO, Brazil — Brazilian President Luiz Inácio Lula da Silva says the U.S. must respect his country — and he’s ready to impose retaliatory tariffs if President Donald Trump goes ahead with a threat to slap a 50% tax on Brazilian imports starting in Aug. 1.

Trump posted the warning in a letter on social media, citing what he called a “witch hunt” against Brazil’s former far-right president Jair Bolsonaro, who is currently on trial for trying to overturn the 2022 election. Trump demanded the case be dropped, calling Bolsonaro “a Highly Respected Leader throughout the World.”

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Lula said in an interview posted to his offical media account that at first he thought the letter from Trump was a fake.

“The Brazilian people must be respected. Brazilian justice must be respected.” Lula said, “We are a great, sovereign country with a historic tradition of diplomacy with all nations. Brazil will adopt the necessary measures to protect its people and its companies.”

The U.S. currently runs a trade surplus with Brazil — unlike many of the more than 20 countries that also received tariff warning letters this week. Last year alone, the U.S. exported more to Brazil than it imported. That’s why Lula called Trump’s claim that the trade relationship was “far from reciprocal” simply inaccurate.

While Trump has issued similar tariff threats to other countries, experts say this case is different. Georgetown trade policy professor Marc Busch says using tariffs as political pressure over another country’s internal judicial proceedings is highly provocative.

“Brazil taking this seriously may escalate in a dramatic and qualitatively different way than Trump has seen with other trade partners,” Busch said.

toggle caption Dado Galdieri/Bloomberg via Getty Images

Lula says his government is exploring retaliation, though Brazil’s Finance Minister Fernando Haddad has tried to dial back tensions. In an interview, he said any dispute “can and must be overcome through diplomacy.”

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The last few days has seen an escalation in rhetoric between the two leaders. Earlier in the week Brazil hosted a summit of the BRICS nations of emerging economies — bringing together founding members Brazil, Russia, India, China, and South Africa, along with newcomers like Egypt and Indonesia. There, in a pointed response to Trump’s tariff threats against BRICS countries, Lula pushed back. “We don’t want an emperor — we are sovereign nations,” he said.

The tariff threats have rattled Brazil’s exporters. Gláucio de Castro, a coffee farmer and head of a major growers federation in Minas Gerais, said that while he supports Trump’s politics, this move would hurt Brazil’s economy.

“I agree with Trump’s thinking,” he said. “But it’s not right to hurt our country commercially — it’s really harmful to us. Brazil is the world’s largest exporter of coffee, and a steep tariff could spike prices for U.S. consumers. The country also exports aircraft, steel, and oil to the U.S., meaning the fallout could stretch across multiple industries.