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See also: Tariffs in the second Trump administration

The 2025 Brazil–United States diplomatic dispute was a period of increased tensions between the government of Brazil and the government of the United States that occurred between June 2025 and December 2025.

The dispute started when US President Donald Trump imposed a 50 percent tariff on Brazilian goods, as well as imposing the Magnitsky law against Brazilian Supreme Court Justice Alexandre de Moraes, the main judge behind the trial of the individuals involved in the 8 January Brasília attacks, and those involved in a coup plot after Jair Bolsonaro lost the 2022 Brazilian presidential election to Luiz Inácio Lula da Silva.[1]

Other measures included revoking the US visas for 8 of the 11 justices of the Brazilian Supreme Court,[2][3][4] officials involved in the program “Mais Médicos” (More Doctors) – a program that brought Cuban doctors to Brazil – including Brazilian Health minister Alexandre Padilha,[5][6] as well as other Brazilian political figures.[7][8][9] The Trump administration also targeted the Pix instant payment system managed by the Brazilian Central Bank, and also investigated accusations of piracy at the Rua 25 de Março (March 25th Street).[10] It also looked into Brazil’s role in BRICS.[11]

History

Background

Brazilian president Luiz Inácio Lula da Silva holds talks with US President Donald Trump in Kuala Lumpur, Malaysia.

The US has run trade surpluses with Brazil since 2007,[12] reaching $253 million in 2024.[13] Nonetheless, Trump criticized the country for as a “tremendous tariff maker” and pledged tariffs on its exports.[14] Brazilian president Luiz Inácio Lula da Silva vowed to reciprocate.[15] However, following Trump’s 25% tariffs on steel and aluminum, Brazilian Institutional Affairs Minister Alexandre Padilha stated that Brazil would not retaliate.[16]

On April 2, 2025, Trump imposed the base 10% tariff on Brazil.[17] Brazilian aircraft manufactuere Embraer voiced worries over rising complexity and costs.[18] Brazilian coffee producers initially were saw an opportunity because of higher tariffs on competitors such as Vietnam, which would make their rivals less competitive.[19][20]

In April 2025, the Brazilian National Congress passed a “Trade Reciprocity Law”, enabling the government to respond to unilateral trade measures.[21][22] By May 2025, according to Finance Minister Fernando Haddad, Brazil and the US were negotiating the terms of an understanding on tariffs.[23]

Tariff dispute

In a letter to Brazil on July 9, 2025, Trump threatened a 50% tariff while denouncing charges against Jair Bolsonaro, an ally facing trial for the 2022 Brazilian coup plot.[24] On July 30, Trump declared Brazil’s actions a US “national emergency” and imposed an additional 40% tariff on top of a 10% baseline tariff, for a total tariff rate of 50%.[25] The order exempted several Brazilian exports, notably airplanes, aeronautical components, iron ore, aluminum, natural gas, orange juice, fertilizers, petroleum and lumber. Other main Brazilian exports were not exempted.[26][27]

Paul Krugman (left) criticized Donald Trump’s tariff on Brazilian goods, arguing it was meant to help “another wannabe dictator”, while the stance of Luiz Inácio Lula da Silva (center) was praised by Joseph Stiglitz (right), who stated the Brazilian president stood up to Trump and “has defended his country’s sovereignty”.

Nobelist Paul Krugman criticized the tariff, stating that the tariff was reason enough to impeach the president.[28] Fellow Nobelist Joseph Stiglitz stated that Brazilian president Luiz Inácio Lula da Silva, by refusing to submit to US intimidation, had “defended his country’s sovereignty” in trade and in the regulation of American-controlled tech platforms.[29] In the aftermath of the announcement, Brazilians adopted the phrase Trump Always Chickens Out (TACO) to mock the American president; the acronym became one of the seven most-used terms on X that week.[30][31]

In August 2025, China authorized 183 Brazilian companies to export coffee under a five-year agreement, aiming to boost imports amid rising domestic demand. The move followed the US imposition of a 50% coffee tariff covering about 30% of US imports. Prices rose sharply for American roasters. The China market was not expected to fully replace US demand.[32][33]

Faced with the tariffs, Lula attempted to diversify Brazil’s international partnerships and strengthening BRICS.[34]

In November 2025, Trump signed Executive Order 14361, “Modifying the Scope of Tariffs on the Government of Brazil”, which exempts coffee, beef and certain other agricultural imports from the 40% tariff on imports from Brazil.[35][36]

On November 24, 2025, The New York Times published an article stating that “Brazil defied Trump and won”, and that, five months after Trump’s “furious letter”, the American president “had pretty much admitted defeat” when he merely called the arrest of Jair Bolsonaro “a pity”. The piece also argued that Luiz Inácio Lula da Silva came out of the episode “politically stronger” than when he entered.[37][38]

See also

References

  1. ^ “Crise Brasil-EUA: Separação não se reflete na sociedade, diz analista”. 11 August 2025.
  2. ^ “Governo Trump revoga visto de Messias e outras autoridades brasileiras”. Migalhas (in Brazilian Portuguese). 2025-09-22. Retrieved 2025-12-20.
  3. ^ “EUA suspendem vistos de Moraes, de outros sete ministros do STF e do PGR”. G1 (in Brazilian Portuguese). 2025-07-19. Retrieved 2025-12-20.
  4. ^ “EUA suspenderam vistos de oito ministros do STF e do PGR, dizem fontes”. CNN Brasil (in Brazilian Portuguese). 2025-07-19. Retrieved 2025-12-20.
  5. ^ “Governo Trump: EUA revogam visto de brasileiros ligados ao programa Mais Médicos”. BBC News Brasil (in Brazilian Portuguese). 2025-08-14. Retrieved 2025-12-20.
  6. ^ “EUA cancelam vistos da filha e da esposa do ministro Alexandre Padilha”. Agência Brasil (in Brazilian Portuguese). 2025-08-15. Retrieved 2025-12-20.
  7. ^ “Governo Trump revoga visto do advogado-geral da União, Jorge Messias”. G1 (in Brazilian Portuguese). 2025-09-22. Retrieved 2025-12-20.
  8. ^ Cicco, Beatriz de (2025-09-22). “Governo Trump revoga visto de Jorge Messias, advogado-geral da União”. JOTA Jornalismo (in Brazilian Portuguese). Retrieved 2025-12-20.
  9. ^ “Veja os brasileiros que tiveram seus vistos para os EUA cancelados”. G1 (in Brazilian Portuguese). 2025-09-22. Retrieved 2025-12-20.
  10. ^ “Pix, 25 de Março, pirataria: entenda por que governo Trump investiga o Brasil”. VEJA (in Brazilian Portuguese). Retrieved 2025-12-20.
  11. ^ “Sanção de Trump contra Brasil é chantagem política e mira o Brics”. Agência Brasil (in Brazilian Portuguese). 2025-07-10. Retrieved 2025-12-20.
  12. ^ Buchwald, Elisabeth (July 9, 2025). “Trump threatens 50% tariffs on Brazil if it doesn’t stop the Bolsonaro ‘witch hunt’ trial”. CNN. Retrieved July 31, 2025.
  13. ^ Ayres, Marcela. “Brazil’s trade surplus shrinks by nearly a quarter in 2024 on rising imports”.
  14. ^ “Trump calls China, India, and Brazil “tremendous tariff-makers,” vows to protect US interests”. The Economic Times. January 28, 2025. ISSN 0013-0389. Retrieved April 9, 2025.
  15. ^ Lisandra Paraguassu; Gabriel Araujo. “Brazil’s Lula vows to reciprocate potential Trump tariffs, makes market-friendly remarks”. Reuters.
  16. ^ Murakawa, Fabio; Amorim, Ruan; Pimenta, Guilherme; Fontes, Stella (February 12, 2025). “Government rejects trade war, says U.S. isn’t aiming a Brazil”. Valor International. Retrieved April 16, 2025.
  17. ^ Ayres, Marcela (April 3, 2025). “Brazil may emerge as winner from sweeping US tariffs, economists say”. Reuters.
  18. ^ Novaes Magalhaes, Luciana; Araujo, Gabriel; Lampert, Allison (April 8, 2025). Shumaker, Lisa; Gregorio, David (eds.). “Brazil’s Embraer says new US tariffs will add complexity and costs to jets”. Reuters.
  19. ^ “Brazilian coffee, beef and tropical fruit will still be tariffed 40%, says Brazil’s vice president”. AP News. 2025-11-15. Retrieved 2026-03-25.
  20. ^ “Brazil coffee exporters glimpse opportunity amidst U.S tariffs”. Reuters. 8 April 2025.
  21. ^ Cite error: The named reference LG was invoked but never defined (see the help page).
  22. ^ “Brazil adopts reciprocity law in response to Trump’s trade war”. Agência Brasil. April 14, 2025. Retrieved April 17, 2025.
  23. ^ Atungwu, Matthew (May 5, 2025). “Tariffs: Brazil, US negotiating terms of understanding”. Daily Post. Lagos, Nigeria. Retrieved May 6, 2025.
  24. ^ Breuninger, Kevin (July 9, 2025). “Brazil will respond to Trump’s 50% tariff with ‘reciprocity,’ says da Silva”. CNBC. Retrieved July 10, 2025.
  25. ^ Samuels, Brett (July 30, 2025). “Brazil faces 50 percent tariff from Trump linked to Bolsonaro trial”. The Hill. Retrieved July 30, 2025.
  26. ^ “Tarifaço de Trump: os produtos brasileiros que escaparam de novas taxas”. BBC News Brasil (in Brazilian Portuguese). July 30, 2025. Retrieved July 31, 2025.
  27. ^ “A Flurry of Tariff Announcements”. Council on Foreign Relations. 31 July 2025.
  28. ^ Krugman, Paul (July 9, 2025). “Trump’s Dictator Protection Program”. Substack. Archived from the original on July 16, 2025.
  29. ^ Pugliese Vellani, Isabella (July 29, 2025). “Brasil se recusa à intimidação dos EUA e reafirma compromisso com democracia, diz Nobel de Economia” [Brazil refuses United States intimidation and reaffirms commitment to democracy, says Nobel Prize–winning economist]. Estadão (in Portuguese). Archived from the original on July 30, 2025.
  30. ^ Sampaio, Henrique (July 31, 2025). “Sabe o que é ‘TACO’? Entenda o meme que brasileiros adotaram para ironizar recuos de Trump” [Do you know what ‘TACO’ is? Understand the meme Brazilians adopted to mock Trump’s backdowns]. Estadão (in Portuguese). Archived from the original on July 31, 2025.
  31. ^ Granchi, Giulia (July 31, 2025). “Como surgiu o meme do ‘TACO’, usado agora por brasileiros para provocar Trump” [How did the ‘TACO’ meme originate, now used by Brazilians to mock Trump?]. BBC News Brasil (in Portuguese). Archived from the original on August 1, 2025.
  32. ^ Diaz, Jaclyn (July 21, 2025). “U.S. coffee drinkers and businesses will pay the price for Trump’s Brazil tariffs”. NPR. Retrieved 2025-08-27.
  33. ^ “China opens door to Brazilian coffee as US slaps on new tariff”. South China Morning Post. August 5, 2025. Retrieved 2025-08-27.
  34. ^ Wintour, Patrick (2025-08-27). “Trump tariffs are reshaping old alliances as the global south plots its own path”. The Guardian. ISSN 0261-3077. Retrieved 2025-08-27.
  35. ^ Hanrahan, Ryan (21 November 2025). “Trump Removes Tariffs on Brazil Beef & Coffee”. Illinois State University Farm Policy News.
  36. ^ “Trump cuts more tariffs with eye toward grocery prices”. POLITICO. 2025-11-20. Retrieved 2026-03-25.
  37. ^ Diniz, Iara (24 November 2025). “‘Lula sai do confronto com Trump mais forte do que entrou’ em caso Bolsonaro, diz New York Times”. BBC News Brasil. Archived from the original on 26 November 2025. Retrieved 26 November 2025.
  38. ^ Saad, Caio (24 November 2025). “‘Brasil desafiou Trump e venceu’, diz New York Times”. VEJA. Archived from the original on 26 November 2025. Retrieved 26 November 2025.