Brazil Files Complaint with WTO Against Trump’s Tariff Hike

Brazilian President Luiz Inacio Lula da Silva's government has formally petitioned the World Trade Organization (WTO) for consultations, seeking relief from steep 50% tariffs imposed by the United States under President Donald Trump. The US administration imposed these tariffs in retaliation for Brazil’s prosecution of former far-right president Jair Bolsonaro, who is accused of conspiring to overturn the results of the 2022 presidential election, which he lost to Lula. The tariff, effective from August, is the highest imposed by Trump on any country this month and could significantly affect Brazil’s economy, targeting approximately 35.9% of its exports to the US—equivalent to 4% of its global exports.

The request for WTO consultations marks the first step in the trade dispute process. While WTO functions as a mediator in international trade conflicts, its resolution mechanisms can be slow and inconclusive. Nonetheless, Brazil seeks a formal dialogue to mitigate the impact of the sudden trade penalties.

Trump announced the tariff on July 9 via a public letter addressed to Lula. Unlike standard trade correspondence, the letter sharply criticized the Brazilian government for prosecuting Bolsonaro, whom Trump described as a “highly respected leader” globally. He called the legal proceedings against Bolsonaro a “witch hunt” and claimed it was politically motivated. Bolsonaro, much like Trump after his 2020 election loss, publicly questioned the legitimacy of the election results. Prosecutors allege that Bolsonaro and his allies discussed drastic measures to retain power, including declaring a “state of siege” to call the military into action and, reportedly, even considered poisoning Lula.

Following his initial letter, Trump issued an executive order on July 30 reinforcing the tariffs and escalating his accusations. He accused Brazil not only of political persecution but also of human rights abuses, particularly citing its regulation of misinformation on social media as a suppression of free speech. Trump claimed these actions threatened US national security, foreign policy, and economic interests.

Despite the tariffs, Trump’s order excluded certain products such as nuts, orange juice, coal, iron, tin, and petroleum products from the new trade penalties. President Lula, however, strongly condemned the move, labeling it a serious breach of Brazil’s sovereignty and comparing it to historical US interference in Latin American politics—such as the 1964 Brazilian military coup. He asserted that the US is overstepping its authority by trying to dictate terms to a sovereign nation.

Lula also revealed plans to strengthen Brazil’s economic independence by reforming its mineral extraction policy and seeking deeper engagement with BRICS nations—Brazil, Russia, India, China, and South Africa. Trump, in response, has threatened a 10% tariff on all BRICS-affiliated countries.

In recent weeks, Lula has ramped up his international outreach, warning that global consumers will bear the consequences of Trump’s protectionist policies. In his first interview with The New York Times in nearly 13 years, Lula dismissed concerns with a firm stance, stating, “I’m not going to cry over spilled milk. If the United States doesn’t want to buy something of ours, we are going to look for someone who will.”