Brazil Turns to WTO After Trump’s 50% Tariff Hits Trade Hard

Brazil has officially asked the World Trade Organization (WTO) to step in, hoping to ease tensions after the United States imposed a steep 50 percent tariff on Brazilian exports.

Sources inside President Luiz Inacio Lula da Silva’s administration confirmed the move on Wednesday, speaking anonymously to outlets like AFP and The Associated Press.

The request for consultations — the usual first step in a trade dispute at the WTO — comes just as the tariffs take effect. The U.S. decision, announced by President Donald Trump, targets Brazil over what he called the political persecution of his ally, former President Jair Bolsonaro.

According to Brazilian Vice President Geraldo Alckmin, nearly 36 percent of Brazilian exports to the U.S. will be hit by the new tariff — around 4 percent of the country’s total exports globally.

Trump made the announcement in a letter dated July 9, addressed directly to Lula. In the letter, he didn’t hold back, slamming Brazil’s decision to prosecute Bolsonaro over an alleged coup plot after his loss in the 2022 presidential election.

“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.

That investigation is still ongoing. Brazilian prosecutors say Bolsonaro and his allies were planning extreme measures — from declaring a “state of siege” to rally the military, to allegedly even discussing the possibility of poisoning Lula, according to details revealed by the authorities.

For his part, Trump — who has faced his own legal battles related to efforts to overturn election results — has framed Bolsonaro’s prosecution as a political hit job.

“This trial should not be taking place,” Trump said in the July 9 letter. “It is a Witch Hunt that should end IMMEDIATELY!”

Three weeks later, on July 30, Trump followed through with an executive order that made the tariffs official. He doubled down on his criticisms, this time accusing Brazil of “human rights abuses” and limiting free speech, pointing to its efforts to control disinformation online.

“Recent policies, practices, and actions of the Government of Brazil threaten the national security, foreign policy, and economy of the United States,” Trump wrote.“Members of the Government of Brazil have taken actions that interfere with the economy of the United States, infringe the free expression rights of United States persons, violate human rights, and undermine the interest the United States has in protecting its citizens and companies.”

While India is also expected to face similar tariffs later this month, Brazil is currently the only country actually hit by the full 50 percent rate so far.

The Lula government has publicly condemned the U.S. move and is now banking on the WTO process to help de-escalate. But the organization’s dispute mechanisms are slow-moving, and outcomes are never guaranteed.