Trump, who was mocked by Brazilian President Lula as the "Emperor of the World," has exerted his power over South American powers.

According to CCTV News, US President Trump signed an executive order on the 30th to impose a 40% tariff on Brazil, bringing the total tariff amount to 50%, which is the highest tariff rate imposed by the United States on trading partners so far.

On the same day, the US Treasury Department announced sanctions against Brazilian Supreme Court Justice Demorice.

The dual punishment of tariffs and sanctions mainly stems from Trump's dissatisfaction with the Lula administration's initiation of a judicial investigation into former Brazilian President Bolsonaro.

Public opinion believes that waving tariffs and sanctions at the same time shows that Trump is escalating diplomatic conflicts with Brazil on multiple levels, including the economy and politics.

Top tier collection but leaving a 'backdoor'

It's also interesting to say that one of Trump's major goals in imposing tariffs is to break the trade surplus with the United States, but Brazil is not a surplus country with the United States, despite the fact that the United States is Brazil's second largest trading partner.

Between 2024 and 2025, Brazil will continue to have a trade deficit with the United States, with deficits of $43 billion in goods trade and $165 billion in services trade.

Perhaps realizing that the reasons for imposing tariffs on trade are not sufficient, and at the same time, it may backfire on itself. While imposing tariffs on Brazil, the United States has also left a "backdoor".

Firstly, dozens of Brazil's major export commodities to the United States are excluded, including civil aircraft, pig iron, precious metals, wood pulp, energy products, fertilizers, orange juice, etc. Secondly, the effective period has been postponed from the initial August 1st to August 6th.

According to estimates from the Brazilian American Chamber of Commerce, over 40% of Brazilian exports to the United States will be exempted.

Goldman Sachs stated that due to exemptions for dozens of goods, the actual tariff rate for Brazilian products exported to the United States should be around 30.8%, lower than previously expected.

The "easing" of tariffs by the United States on Brazil is believed to mainly alleviate concerns of American companies and reduce domestic inflation risks in the United States.

For example, about 90% of freshly squeezed orange juice in the United States comes from Brazil, which has been exempted from tariffs this time.

To stand up for our allies' grievances

Since it's not about balancing trade, why did Trump impose tariffs on Brazil?

According to Trump's tone, this is to stand up for his ally, former President Bolsonaro, who is seen as the 'Brazilian Trump'.

Bolsonaro has been criminally charged with attempting a coup after losing the 2022 presidential election.

Trump condemns the Brazilian government's "political persecution" of Bolsonaro, which "seriously violates human rights and undermines the rule of law".

Earlier in July, he wrote to Brazilian President Lula, threatening to increase tariffs on Brazil if the legal action against Bolsonaro is not terminated.

For the same reason, on the 30th, the United States announced sanctions against Judge Demorice, who presided over the Bosonaro case.

Demoles ruled in July that Bolsonaro had engaged in coercion and obstruction of justice, blatantly endangering national sovereignty, and ordered restrictive measures to be taken against him.

According to the announcement from the US Treasury Department, all assets of Demorice in the US will be frozen, and any companies associated with him will be restricted. Demoles is also subject to a comprehensive ban on financial transactions with American citizens and companies. Previously, the US State Department had revoked Demorice's visa.

Some comments have pointed out that the punitive measures against Demorice show that the US government has rarely used the harshest human rights sanctions.

Escaping diplomatic crisis

In addition to supporting political allies, Trump may also want to use tariffs to strike at Lula's disrespect towards him.

Lula previously choked Trump: The world has changed, we don't need an emperor.

No world leader has strongly opposed Trump like Lula, "commented American public opinion.

On July 30th, Lula expressed support for Demorice, calling the US sanctions "unacceptable".

Lula and Demoles criticized Trump for infringing on Brazil's sovereignty and interfering in Brazil's judicial process.

Lula also stated that Brazil is willing to engage in trade negotiations with the United States regarding the imposition of tariffs, but will not give up existing self-defense measures, and hinted at the possibility of retaliatory measures.

Goldman Sachs stated that if Brazil takes retaliatory measures, it will have a "greater negative impact" on economic activity and inflation on both sides.

Domestic analysis in the United States suggests that due to the majority of goods being exempted from tariffs, Trump's tariff actions against Brazil may not be as severe as they appear. However, the use of tariffs and sanctions to intervene in Brazil's economy, politics, and judiciary shows that Trump is sending a clear signal of readiness to engage in war with Brazil.

Trump's actions significantly escalate the escalating diplomatic crisis between the two most populous countries in the Western Hemisphere, "commented one.

(Edit email: ylq@jfdaily.com ）

Original title: "Tariffs and sanctions go up! Trump is willing to go to war with a major country for one person"

Column Editor in Chief: Yang Liqun

Text editor: Yang Liqun

Author: Liao Qin from Liberation Daily