Trump imposed a 50% retaliatory tariff on Brazil and initiated a trade investigation, President Lula: Foreigners should not meddle in politics.

The Brazilian government recently filed a lawsuit against the ally of U.S. President Trump, former president Bolsonaro (Bolsonaro). In response, Trump expressed his anger and announced that starting from 8/1, he will impose an additional 50% equivalent tariff on all Brazilian goods exported to the U.S., targeting the instant payment system Pix launched by the Central Bank of Brazil, questioning its encroachment on the market share of U.S. financial operators in Brazil, thus initiating a trade investigation against Brazil. This move immediately triggered a strong rebound from the current president Lula (Luiz Inacio Lula da Silva), who bluntly stated, "Foreigners should not interfere in our politics!"

The United States officially launched a trade investigation against Brazil, and X being banned is also counted.

U.S. Trade Representative Jamieson Greer announced on July 18 that a digital trade investigation will be launched against Brazil, focusing on the real-time payment system Pix introduced by the Central Bank of Brazil. Greer stated that the investigation will assess whether Brazil has given more favorable treatment to other countries than the U.S. in terms of tariffs and non-tariff barriers, and it will also examine whether U.S. tech companies have been penalized for previously refusing to cooperate with Brazil's political speech censorship.

The investigation dates back to a controversy in August 2024. At that time, the Brazilian government requested Twitter (X) to establish a legal representative office locally and remove misinformation and politically sensitive content, or it would be banned. However, Elon Musk ( refused to compromise, and Brazil ultimately ordered a ban on X. This move has left American tech companies quite dissatisfied, believing that Brazil is extremely unfriendly towards foreign enterprises, equivalent to a disguised punishment of American companies.

Brazil and BRICS allegedly undermine the dollar's hegemony, causing dissatisfaction from Trump.

In the same year, Brazil and other BRICS countries launched the cross-border payment platform BRICS Pay, which focuses on bypassing the SWIFT system to conduct transactions in local currencies. At the BRICS summit held in Rio that year, member countries also discussed the establishment of a common reserve currency, directly challenging the status of the US dollar.

The Pix launched by the Brazilian government in 2020 allows local residents to transfer money 24 hours a day with almost no transaction fees. Payments can be made using a mobile app, QR code, or simple account code, completely bypassing credit card companies. In just 5 years, Pix has become widespread among 60 million merchants in the area, from street vendors to utility bills, with the number of users exceeding 150 million.

U.S. Trade Representative Greer pointed out that the Brazilian government may favor its own payment system and collaborate with other countries, further undermining U.S. financial players' business presence in the region. This series of actions is seen as a weakening of the dollar's financial hegemony, which has also made U.S. President Trump quite unhappy.

Trump speaks out for the former Brazilian president, stating that he will investigate Brazil.

The time has come to July 7 of this year, and Trump called on Brazilian authorities to withdraw the prosecution against former President Bolsonaro )Bolsonaro(, criticizing it as a "political witch hunt." Bolsonaro has a close relationship with Trump, being almost political allies and personal friends. After leaving office, he has been entangled in multiple judicial cases and is being prosecuted by the current President Lula )Lula('s government.

Therefore, in mid-July, Trump directly sent a letter to Brazilian President Lula, warning that if Brazil did not make concessions, the United States would initiate a comprehensive investigation. He also threatened to impose a 50% punitive tariff on all Brazilian imported goods starting from 8/1. Trump pointed out that the Brazilian government utilized the Pix payment system to exclude American credit cards and fintech companies, preventing American enterprises from having a fair chance to compete locally.

Trump imposes a 50% tariff on Brazil, Lula: Foreigners, don't meddle in politics.

Subsequently, Lula responded to Trump's sudden threat of a 50% tariff, emphasizing that this is an interference with Brazil's sovereignty and judicial independence. In another speech on the same day, he criticized Trump, saying "foreigners should not interfere in politics," and pointed out that many of Trump's accusations "do not reflect the truth," especially that Brazil is not a country with a trade surplus with the U.S., but rather has been in a deficit for a long time.

He emphasized that Bolsonaro was indicted for attempting a coup and threatening to assassinate the Vice President and the Chief Justice, asserting that the judiciary is completely independent of the President and it is not political persecution. Lula criticized Trump for announcing tariff decisions in an open letter format, which undermines the 200-year friendly relationship between the two countries, and stated that Brazil is willing to "negotiate solutions in all the languages of the dictionary" but does not rule out resorting to the WTO, retaliatory tariffs, or joining other countries in response if negotiations fail.

Trump and former Brazilian President Bolsonaro

He also emphasized that Brazil is actively exploring new markets such as the EU, ASEAN, and Latin America, and will not become a "hostage" of the United States, but still hopes to maintain relations with the US. Regarding Trump's intention to play a mediating role in the Russia-Ukraine war while selling more weapons, Lula bluntly stated that the world lacks effective global governance, and the UN Security Council should be reformed to truly promote peace. He finally assured the Brazilian people that he would explain Brazil's position in a national speech, emphasizing that Brazil does not accept any coercive orders and only accepts negotiations based on equality.

In this article, Trump imposes a 50% retaliatory tariff on Brazil and initiates a trade investigation. President Lula: Foreigners, don't meddle in politics. First appeared in Chain News ABMedia.