President Donald Trump is threatening to impose 50% tariffs on Brazilian imports — a move that could spike prices of breakfast staples like coffee and orange juice.Brazil is the top supplier of both products to the U.S., accounting for more than a third of coffee imports and about half of all orange juice. Industry leaders say the tariffs would hit consumers hard.“Fifty percent is really a high tariff,” said Giuseppe Lavazza, chairman of Italian coffee giant Lavazza. “It could create a lot of inflation in our industry that’s already under stress.”Coffee prices have already risen nearly 18% over the past year. Brazil also exports large amounts of crude oil, iron, and aircraft parts to the U.S.“Please understand that these Tariffs are necessary to correct the many years of Brazil’s Tariff, and Non-Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits Against the United States,” President Trump wrote in rolling out the new tariff level. But federal data shows the U.S. had a $7 billion surplus last year.Brazil's president is threatening retaliation under the country’s economic reciprocity law, which allows for the suspension of trade and investment deals with countries deemed hostile to Brazil’s competitiveness.The new tariffs are set to take effect Aug. 1, the same day President Trump’s broader package of reciprocal trade penalties kicks in. The action stems from Trump’s April 2 “Liberation Day” announcement, when he declared an economic emergency and unveiled a 10% baseline tariff on imports from dozens of countries. That move triggered a 90-day review period for nations to renegotiate trade terms or face higher penalties. With that window now closed, President Trump is sending formal letters outlining new rates if trade deals are not reached.A personal motivationPresident Trump is openly tying the 50% tariffs to Brazil’s prosecution of his political ally, former President Jair Bolsonaro, who is on trial for trying to overturn the 2022 election. Bolsonaro has already been barred from running again until 2030.“This trial should not be taking place,” President Trump wrote on Truth Social. “It is a Witch Hunt that should end IMMEDIATELY!”President Trump and Bolsonaro share political and personal ties. The two met at Mar-a-Lago during their presidencies, and both have been accused of trying to cling to power after losing elections.President Luiz Inácio Lula da Silva responded forcefully: “Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone.”He defended the legal proceedings against Bolsonaro."Proceedings against those who planned the coup d’etat is a competence of the Brazilian judiciary and is not subject to interference or threats that harm the independence of national institutions,” President Lula said.President Trump also criticized Brazil’s Supreme Court for fining social media companies and accused the country of censorship. He said the new tariffs fall under Section 301 of the Trade Act of 1974, which allows action against unfair foreign trade practices.Check out more from the Hearst Washington Bureau here:
WASHINGTON — President Donald Trump is threatening to impose 50% tariffs on Brazilian imports — a move that could spike prices of breakfast staples like coffee and orange juice.
Brazil is the top supplier of both products to the U.S., accounting for more than a third of coffee imports and about half of all orange juice. Industry leaders say the tariffs would hit consumers hard.
“Fifty percent is really a high tariff,” said Giuseppe Lavazza, chairman of Italian coffee giant “It could create a lot of inflation in our industry that’s already under stress.”
Coffee prices have already risen nearly 18% over the past year. Brazil also exports large amounts of crude oil, iron, and aircraft parts to the U.S.
“Please understand that these Tariffs are necessary to correct the many years of Brazil’s Tariff, and Non-Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits Against the United States,” But federal data shows the U.S. had a
Brazil's president is threatening retaliation under the country’s economic reciprocity law, which allows for the suspension of trade and investment deals with countries deemed hostile to Brazil’s competitiveness.
The new tariffs are set to take effect Aug. 1, the same day President Trump’s broader package of reciprocal trade penalties kicks in.
The action stems from Trump’s April 2 “Liberation Day” announcement, when he declared an economic emergency and unveiled a 10% baseline tariff on imports from dozens of countries. That move triggered a 90-day review period for nations to renegotiate trade terms or face higher penalties. With that window now closed, President Trump is sending formal letters outlining new rates if trade deals are not reached.
A personal motivation
President Trump is openly tying the 50% tariffs to Brazil’s prosecution of his political ally, former President Jair Bolsonaro, who is on trial for trying to overturn the 2022 election. Bolsonaro has already been barred from running again until 2030.
“This trial should not be taking place,” “It is a Witch Hunt that should end IMMEDIATELY!”
President Trump and Bolsonaro share political and personal ties. The two met at Mar-a-Lago during their presidencies, and both have been accused of trying to cling to power after losing elections.
“Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone.”
He defended the legal proceedings against Bolsonaro.
"Proceedings against those who planned the coup d’etat is a competence of the Brazilian judiciary and is not subject to interference or threats that harm the independence of national institutions,” President Lula said.
President Trump also criticized Brazil’s Supreme Court for fining social media companies and accused the country of censorship. He said the new tariffs fall under , which allows action against unfair foreign trade practices.
Check out more from the Hearst Washington Bureau here:
