US Slaps 25% Tariffs on Brazil as Lula Opens 45%-37% Runoff Lead
Updated
Updated · Al Jazeera English · Jul 22
US Slaps 25% Tariffs on Brazil as Lula Opens 45%-37% Runoff Lead
3 articles · Updated · Al Jazeera English · Jul 22
Summary
October 4 elections in Brazil are being reshaped by Washington’s new 25% tariffs and gang sanctions, with Lula casting the moves as an attack on national sovereignty.
The US says Brazil unfairly favored its Pix payment system, kept an 18% tariff on US ethanol and weakly enforced deforestation laws, extending levies to many goods after a yearlong investigation.
A Quaest poll for Folha de S Paulo showed Lula leading Flavio Bolsonaro 45% to 37% in a projected runoff, while analysts said US pressure is alienating voters across Brazil’s political spectrum.
Flavio Bolsonaro asked Washington to delay the tariffs until after the vote, warning they would help Lula, after earlier lobbying helped secure US terrorist designations for PCC and Comando Vermelho.
The dispute also reflects Trump’s long alignment with the Bolsonaro family, but Brazil’s business groups and right-leaning voters have grown more wary as tariff unpredictability raises economic and political costs.
With tariffs boosting his opponent, what is President Trump's real strategic goal in Brazil's election?
As Brazil reports record-low deforestation, why are U.S. environmental tariffs intensifying now?
If key Brazilian exports are exempt, how do these tariffs actually pressure Brazil's government?
U.S. Slaps 25% Tariffs on Brazil: Trade War Escalates, Election Shaken, and Global Alliances Shift
Overview
On July 22, 2026, the Trump administration imposed 25% tariffs on Brazilian goods after a yearlong investigation under Section 301 of the Trade Act, citing unfair trade practices like digital trade barriers and illegal deforestation. This move aimed to restore President Trump's authority and address perceived trade imbalances. Brazil strongly condemned the action, announcing immediate retaliatory measures, including invoking its Reciprocity Law and seeking dispute settlement at the WTO. The tariffs sparked intense political debate in Brazil, especially as the presidential election approached, with candidates blaming each other for the escalating trade conflict and its impact on the country.