Trump goes after Brazil with tariff threats over Bolsonaro, tech
Why it matters: Trump's tariff letter to Brazil is far more aggressive, with a much higher levy, than any other trade missive he's sent this week.
The big picture: In an extraordinary move, Trump is wielding U.S. economic powers to crack down on Brazil for its treatment of former President Jair Bolsonaro, a Trump ally on trial for allegedly plotting a coup.
The levies threaten a wide variety of crucial U.S. imports, everything from steel to coffee.
What they're saying: Trump opened his letter to Brazilian President Luiz Inácio Lula da Silva with an explicit demand to end Bolsonaro's trial.
"This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!" Trump wrote in the letter, a copy of which was posted to Truth Social.
Zoom in: Trump said he was ordering a so-called Section 301 probe of Brazil, which would allow the U.S. to take even broader measures against the country.
He cited Brazil's "continued attacks on the Digital Trade activities of American Companies," an apparent reference to the country's proposed digital services tax — a hot-button trade issue for the administration.
He also cited Brazilian orders to U.S. social media companies that he equated to censorship.
The intrigue: Trump's letter notes that the 50% blanket tariff would stack on top of other sectoral tariffs — potentially making Brazilian steel, for example, prohibitively expensive.
But the letter makes no mention of the additional " BRICS" levy Trump recently threatened.
The bottom line: Trump is trying to use the economic power of the U.S. to influence another country's domestic policy for the benefit of a personal ally.
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