U.S. President Donald Trump dramatically escalated trade tensions with Brazil and India on Wednesday, unveiling sweeping new tariffs that have sent shockwaves through diplomatic and economic circles.
The White House announced a 50 percent tariff on Brazilian exports to the United States — the steepest import duty Trump has imposed on any country during his current term. The move was accompanied by sanctions targeting a Brazilian Supreme Court justice overseeing the prosecution of former president Jair Bolsonaro, a staunch Trump ally accused of attempting to subvert the 2022 election results in Brazil.
The development has further strained relations between the U.S. and Brazil, Latin America’s largest economy, and is widely seen as a political message aimed at Brazilian President Luiz Inácio Lula da Silva, who has openly clashed with Trump in recent weeks.
Trump had previously warned that Brazil would face punitive tariffs if it failed to halt legal proceedings against Bolsonaro. Although the ultimatum was set to expire on Friday, Trump accelerated the timeline, signing an executive order to enact the tariffs a full two days early.
In an interview published by The New York Times before the tariff decision was confirmed, President Lula condemned Trump’s approach as heavy-handed and disrespectful.
“We are treating this with the utmost seriousness,” Lula said. “But seriousness does not require subservience.”
The Brazilian government has yet to issue an official response to the sanctions on the Supreme Court justice, though insiders in Brasília say an emergency cabinet meeting is being convened.
Meanwhile, India also found itself in Trump’s crosshairs. The president declared that a 25 percent tariff on Indian exports would take effect from Friday — a deadline he has set for concluding trade deals with a number of foreign governments.
Trump criticised India for what he called “excessive trade barriers” and its continued purchases of energy and military equipment from Russia, signalling that the tariff is intended to pressure Prime Minister Narendra Modi’s administration into a more favourable bilateral deal.
The proposed 25 percent tariff edges close to the 26 percent rate Trump had previously threatened in April. It also exceeds duties imposed on several other Asian countries, such as Japan, Vietnam and Indonesia, which have faced levies of 20 percent or lower.
India, currently the 12th-largest U.S. trading partner, has seen trade negotiations with Washington stall in recent weeks. In response to the new threat, India’s commerce ministry issued a brief statement reaffirming its commitment to a “fair and balanced” trade agreement with the United States.
Trade analysts warn the dual tariff measures could trigger retaliatory actions and complicate broader U.S. diplomatic efforts in both Latin America and Asia. Critics have accused Trump of using trade policy as a tool for personal and political influence abroad.
More fallout is expected in the coming days as both Brazil and India assess their options in the face of intensifying U.S. pressure.
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