to impose a 50% import tax on Brazilian goods from 1 August. In a letter, Trump cited Brazil's treatment of former President Jair Bolsonaro as a trigger for tariff-hike. Bolsonaro is currently on trial for allegedly attempting to stage a coup against Lula after being defeated by him in the 2022 election. Trump referred to Bolsonaro as "a highly respected leader throughout the world". "This Trial should not be taking place," he wrote, calling on Brazil to immediately end the "witch hunt" against the former president. Trump's support for Bolso-naro does not come as a surprise as the two men have long been considered allies.

The US president had already slammed Brazil for its treatment of Bolsonaro on Monday, comparing it to the legal cases he himself had faced in US courts. The 50% tariff threat was met with a robust and lengthy response by President Lula. In a post on X, he stressed that Brazil was "a sovereign country with independent institutions and will not accept any tute-lage". The Brazilian leader also announced that "any unilateral tariff increases" would be met with reciprocal tariffs imposed on US goods. The US is Brazil's second-largest trade partner after China, so the hike from a tariff rate of 10% to an eye-watering 50% - if it comes into force - would hit the South American nation hard. But Lula also made a point of chal-lenging Trump's assertion that the US had a trade deficit with Brazil, calling it "inaccurate". (BBC)