Latest news with #TradeActof1974
The Sun
7 days ago
- Business
- The Sun
US investigates Brazil's trade practices and digital payment services
WASHINGTON: U.S. Trade Representative Jamieson Greer said on Tuesday he had launched an investigation into Brazil's 'unfair' trading practices, a week after President Donald Trump threatened a 50% tariff on imports from Latin America's largest economy. Trump's trade war, launched since starting his second term in January, sets tariffs on nearly all U.S. trading partners, aiming to reorder the global economy and end decades of what he calls discrimination against the United States. The USTR investigation, announced last week by Trump, will decide if Brazil's treatment of digital trade and preferential tariffs, among others, is 'unreasonable or discriminatory and burdens or restrict' U.S. commerce, Greer said. 'At President Trump's direction, I am launching a Section 301 investigation into Brazil's attacks,' he added in a statement. Among victims of such attacks he cited U.S. social media and other companies, as well as workers, farmers, and technology innovators he described as harmed by Brazil's 'unfair trading practices'. Following extensive consultations, Greer added, 'I have determined that Brazil's tariff and non-tariff barriers merit a thorough investigation, and potentially, responsive action.' Trump justified his 50% tariff from August 1, well above the rate of 10% initially proposed, with a demand for an end to the trial of former President Jair Bolsonaro for allegedly plotting a coup. The high tariff for Brazil surprised many trade experts since its U.S. goods imports exceed its exports, and because Trump linked the rate so clearly to Bolsonaro's trial. Brazil offered no immediate reaction to news of the U.S. investigation. On Monday, Vice President Geraldo Alckmin said it had yet to receive a response from Washington to an offer it made in trade talks two months ago. During his first term, Trump used Section 301 of the Trade Act of 1974 to justify a spate of tariffs against China. It was also used to investigate other countries for digital services taxes on U.S. tech firms. In a statement, USTR said Brazil disadvantaged U.S. firms by setting lower tariffs on exports of other trading partners and accused it of failing to battle corruption. It added that Brazil also charged substantially higher tariffs on U.S. ethanol exports, and 'appears to be failing' to enforce laws against illegal deforestation, which it said harmed the competitiveness of U.S. timber producers. - Reuters
Yahoo
12-07-2025
- Politics
- Yahoo
Trump announces 50% tariff on Brazil, citing a ‘witch-hunt' against Bolsonaro
Donald Trump announced on Wednesday that his administration will hit Brazil with a 50% tariff on products sent to the US, tying the move to what he called the 'witch-hunt' trial against its former president, Jair Bolsonaro. Posting letters on Truth Social, the US president had earlier in the day targeted seven other countries – the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka – for stiff US tariffs on foreign exports starting on 1 August. On Wednesday afternoon, Trump avoided his standard form letter with Brazil, and criticized the trial Bolsonaro is facing over trying to overturn his 2022 election loss. Trump has described Bolsonaro as a friend and hosted the former Brazilian president at his Mar-a-Lago resort when both were in power in 2020. 'This Trial should not be taking place,' Trump wrote in the letter posted on Truth Social on Wednesday. 'It is a witch hunt that should end IMMEDIATELY!' He said the 50% tariffs on Brazil would be 'separate from all sectoral tariffs'. After the news, Brazil's real currency added to earlier losses to fall more than 2% against the dollar. Brazil's president, Luiz Inácio Lula da Silva, rejected Trump's demand that legal proceedings against Bolsonaro be dropped and his claim that a 50% tariff on Brazilian imports was necessary to close a trade deficit that does not, in fact, exist. In a statement posted on social media and his government's website, the Brazilian president responded, point by point, to the claims made by Trump in a letter addressed to him earlier on Wednesday. 'Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,' Lula began. He then pointed out that the charges against Bolsonaro, for allegedly plotting to remain in power after losing his bid for re-election, 'fall exclusively under the jurisdiction of Brazil's judicial branch and, as such, are not subject to any interference or threats that could compromise the independence of national institutions'. Trump also objected to Brazil's supreme court fining of social media companies such as Twitter/X, saying the temporary blocking last year amounted to 'SECRET and UNLAWFUL Censorship Orders'. Trump said he is launching an investigation as a result under section 301 of the Trade Act of 1974, which applies to countries with trade practices that are deemed unfair to US companies. Lula also rejected Trump's claim that Brazil's efforts to regulate the operations of US social media platforms on its territory in accordance with its own laws are a form of censorship. 'Brazilian society rejects hateful content, racism, child pornography, scams, fraud, and speeches against human rights and democratic freedom' Lula wrote. 'In Brazil, freedom of expression must not be confused with aggression or violent practices. All companies – whether domestic or foreign – must comply with Brazilian law in order to operate within our territory.' The US president had been scheduled to hike tariffs on dozens of countries on Wednesday. Earlier this week he announced a fresh three-week delay, to 1 August, but started announcing new rates that countries would face unless they strike a deal with the White House. After announcing plans on Monday for US tariffs of up to 40% on goods imported from 14 countries, including Bangladesh, Japan and South Korea, Trump wrote to the leaders of more countries on Wednesday, and published each letter. Related: Trump threatens to escalate trade war amid confusion over new tariff rates He claimed exporters in Algeria, Iraq, Libya and Sri Lanka would face a US tariff of 30%, while exporters in Brunei, Moldova and the Philippines would face a 25% tariff. 'These Tariffs may be modified, upward or downward, depending on our relationship with your Country,' Trump wrote. A string of delays and rate changes have frustrated businesses in the US and around the world. On Tuesday, Trump vowed to introduce US tariffs of up to 200% on foreign drugs and 50% on copper, propelling US prices of the latter to record highs. But appearing alongside the leaders of Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal at the White House on Wednesday, the president indicated that the five African nations were unlikely to face US tariffs as they intended to lower their own tariffs on US exports. The US president's latest threats have heightened fears that his erratic trade strategy risks exacerbating inflation across the US, having repeatedly pledged on the campaign trail to bring down prices rapidly. Trump appears aware of this apprehension. 'I brought down costs more than any President in recorded history,' he wrote on social media late on Tuesday. 'The Crooked Democrats are using the opposite narrative, even though they know it is a total LIE.' Analysis by Oxford Economics indicated that the US effective tariff rate on imports from overseas would rise to about 20% after the latest tariff letters. 'That is up from 17% but less than our recession threshold of 25%-28%,' said Michael Pearce, its deputy US economist at Oxford Economics. 'Our assumption is that most countries will secure a deal or extension to avoid tariff increases,' said Pearce. 'However, the risks are skewed toward higher rates.' While Trump and his allies have sought to pressure the Federal Reserve into cutting interest rates, the central bank's top officials – led by its chair, Jerome Powell – have so far refused, as they wait to see the impact of his tariffs on the economy. Minutes taken from the Fed's latest rate-setting meeting, released on Wednesday, disclosed that only 'a couple' of its officials said they felt interest rates could fall as soon as its next meeting, later this month. 'Most participants' at the Fed meeting – at which rates were kept on hold last month – anticipated rate cuts later this year, according to the minutes, with any price shock caused by Trump's tariffs expected to be 'temporary or modest'. Robert Mackey contributed reporting • This article was amended on 10 July 2025. An earlier version said that section 301 of the Trade Act of 1974 applied to companies with trade practices that are deemed unfair to US companies; that should have said countries.
Korea Herald
10-07-2025
- Business
- Korea Herald
Trump tariffs goods from Brazil at 50%, citing 'witch hunt' trial against country's former president
WASHINGTON (AP) — US President Donald Trump singled out Brazil for import taxes of 50 percent on Wednesday for its treatment of its former president, Jair Bolsonaro, showing that personal grudges rather than simple economics are a driving force in the US leader's use of tariffs. Trump avoided his standard form letter with Brazil, specifically tying his tariffs to the trial of Bolsonaro, who is charged with trying to overturn his 2022 election loss. Trump has described Bolsonaro as a friend and hosted the former Brazilian president at his Mar-a-Lago resort when both were in power in 2020. 'This Trial should not be taking place,' Trump wrote in the letter posted on Truth Social. 'It is a Witch Hunt that should end IMMEDIATELY!' There is a sense of kinship as Trump was indicted in 2023 for his efforts to overturn the results of the 2020 US presidential election. The US president addressed his tariff letter to Brazilian President Luiz Inacio Lula da Silva, who bested Bolsonaro in 2022. Lula responded in a forceful statement that said Trump's tariffs would trigger the country's economic reciprocity law, which allows trade, investment and intellectual property agreements to be suspended against countries that harm Brazil's competitiveness. He noted that the US has had a trade surplus of more than $410 billion with Brazil over the past 15 years. 'Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone,' Lula said. Bolsonaro testified before the country's Supreme Court in June over the alleged plot to remain in power after his 2022 election loss. Judges will hear from 26 other defendants in the coming months, and legal analysts say a decision could come as early as September. The country's electoral authorities have already barred Bolsonaro from running for office until 2030. The former president did not comment about Trump's tariff decision on his social media channels, but wrote that he is being politically persecuted. In his statement, Lula defended the country's legal system, saying the 'proceedings against those who planned the coup d'etat is a competence of the Brazilian judiciary and is not subject to interference or threats that harm the independence of national institutions.' Trump also objected to Brazil's Supreme Court fining of social media companies, saying the temporary blocking last year amounted to 'SECRET and UNLAWFUL Censorship Orders.' Trump said he is launching an investigation as a result under Section 301 of the Trade Act of 1974, which applies to countries with trade practices that are deemed unfair to US companies. Among the companies the Supreme Court fined was X, which was not mentioned specifically in Trump's letter. X is owned by Elon Musk, Trump's multibillionaire backer in the 2024 election whose time leading Trump's Department of Government Efficiency recently ended and led to a public feud over the US president's deficit-increasing budget plan. Trump also owns a social media company, Truth Social. 'In Brazil, freedom of speech is not mistaken by aggression or violent behavior," Lula said in his statement. "To operate in our country, every company, local or foreign, must be subjected to Brazilian legislation.' Brazilian lawmakers allied with Lula blamed Bolsonaro and two of his sons, congressman Eduardo Bolsonaro and Sen. Flavio Bolsonaro, for Trump's tariff action. Sen. Lindbergh Farias, the whip of Lula's Workers' Party in the Senate, said on social media that the Bolsonaros 'must be very happy to harm Brazil, our economy and our jobs.' The Brazil letter was a reminder that politics and personal relations with Trump matter just as much as any economic fundamentals. And while Trump has said the high tariff rates he's setting are based on trade imbalances, it was unclear by his Wednesday actions how the countries being targeted would help to reindustrialize America. The tariffs starting Aug. 1 would be a dramatic increase from the 10 percent rate that Trump levied on Brazil as part of his April 2 'Liberation Day' announcement. In addition to oil, Brazil sells orange juice, coffee, iron and steel to the US, among other products. The US ran a $6.8 billion trade surplus with Brazil last year, according to the Census Bureau . Trump initially announced his broad tariffs by declaring an economic emergency, arguing under a 1977 law that the US was at risk because of persistent trade imbalances. But that rationale becomes problematic in this particular case, as Trump is linking his tariffs to the Bolsonaro trial and the US exports more to Brazil than it imports. Trump also sent letters Wednesday to the leaders of seven other nations. None of them — the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka — is a major industrial rival to the US. Most economic analyses say the tariffs will worsen inflationary pressures and subtract from economic growth, but Trump has used the taxes as a way to assert the diplomatic and financial power of the US on both rivals and allies. His administration is promising that the taxes on imports will lower trade imbalances, offset some of the cost of the tax cuts he signed into law on Friday and cause factory jobs to return to the US. Trump, during a White House meeting with African leaders, talked up trade as a diplomatic tool. Trade, he said, 'seems to be a foundation' for him to settle disputes between India and Pakistan, as well as Kosovo and Serbia. 'You guys are going to fight, we're not going to trade,' Trump said. 'And we seem to be quite successful in doing that.' Trump said the tariff rates in his letters were based on 'common sense' and trade imbalances, even though the Brazil letter indicated otherwise. Trump suggested he had not thought of penalizing the countries whose leaders were meeting with him in the Oval Office — Liberia, Senegal, Gabon, Mauritania and Guinea-Bissau — as 'these are friends of mine now.' Countries are not complaining about the rates outlined in his letters, he said, even though those tariffs have been generally close to the ones announced April 2 that rattled financial markets. The S&P 500 stock index rose Wednesday. 'We really haven't had too many complaints because I'm keeping them at a very low number, very conservative as you would say,' Trump said. Officials for the European Union, a major trade partner and source of Trump's ire on trade, said Tuesday that they are not expecting to receive a letter from Trump listing tariff rates. The Republican president started the process of announcing tariff rates on Monday by hitting two major US trading partners, Japan and South Korea, with import taxes of 25 percent. According to Trump's Wednesday letters, imports from Libya, Iraq, Algeria and Sri Lanka would be taxed at 30 percent, those from Moldova and Brunei at 25% and those from the Philippines at 20 percent. The tariffs would start Aug. 1. The Census Bureau reported that last year the US ran a trade imbalance on goods of $1.4 billion with Algeria, $5.9 billion with Iraq, $900 million with Libya, $4.9 billion with the Philippines, $2.6 billion with Sri Lanka, $111 million with Brunei and $85 million with Moldova. The imbalance represents the difference between what the US exported to those countries and what it imported. Taken together, the trade imbalances with those seven countries are essentially a rounding error in a US economy with a gross domestic product of $30 trillion. The letters were posted on Truth Social after the expiration of a 90-day negotiating period with a baseline levy of 10 percent. Trump is giving countries more time to negotiate with his Aug. 1 deadline, but he has insisted there will be no extensions for the countries that receive letters. The president threatened additional tariffs on any country that attempts to retaliate.
Nikkei Asia
10-07-2025
- Business
- Nikkei Asia
Trump imposes 50% tariffs on Brazil after public spat with Lula
WASHINGTON/BRUSSELS (Reuters) -- U.S. President Donald Trump turned his trade ire against Brazil on Wednesday, threatening Latin America's largest economy with a punitive 50% tariff on exports to the U.S. and ordering an unfair trade practices investigation that could lead to even higher tariffs. Trump set the Aug. 1 tariff rate -- far higher than the 10% duty imposed on Brazil on April 2 -- in a tariff letter to Brazilian President Luiz Inacio Lula da Silva, that vented anger over what he called the "Witch Hunt" trial of Lula's right-wing predecessor, Jair Bolsonaro. Criticizing what he said were Brazil's attacks on free elections and speech and "SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms," Trump also ordered the U.S. Trade Representative's office to open an unfair trade practices investigation into Brazil's policies under Section 301 of the Trade Act of 1974. The probe could lead to further tariffs on Brazilian exports. Trump's broadside against Brazil came as his administration was inching closer to a deal with its biggest trading partner bloc, the European Union. Trump earlier on his Truth Social media platform issued Aug. 1 tariff notices to seven minor trading partners: a 20% tariff on goods from the Philippines, 30% on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25% on Brunei and Moldova. Those countries are bit players in the U.S. trade deficit, accounting for just under $15 billion in U.S. imports in 2024. Brazil is the 15th largest U.S. trading partner, with total two-way trade of $92 billion in 2024, and a rare $7.4 billion U.S. trade surplus. But Trump's letter to Lula contained the same language as previous form letters describing Brazil's trading relationship as "very unfair". The latest letters add to 14 others issued earlier in the week including 25% tariffs for powerhouse U.S. suppliers South Korea and Japan, which are also to take effect August 1 barring any trade deals reached before then. They were issued a day after Trump said he was broadening his trade war by imposing a 50% tariff on imported copper and would soon introduce long-threatened levies on semiconductors and pharmaceuticals. Trump's rapid-fire tariff moves have cast a shadow over the global economic outlook, paralyzing business decision-making. Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the U.S. Trump said he would "probably" tell the EU within two days what rate it could expect for its exports to the U.S., adding that the 27-nation bloc had become much more cooperative. "They treated us very badly until recently, and now they're treating us very nicely. It's like a different world, actually," he said. EU trade chief Maros Sefcovic said good progress had been made on a framework trade agreement and a deal may even be possible within days. Sefcovic told EU lawmakers he hoped that EU negotiators could finalise their work soon, with additional time now from the extension of a U.S. deadline to August 1 from July 9. "I hope to reach a satisfactory conclusion, potentially even in the coming days," Sefcovic said. However, Italian Economy Minister Giancarlo Giorgetti had earlier warned that talks between the two sides were "very complicated" and could continue right up to the deadline. EU officials and auto industry sources said that U.S. and EU negotiators were discussing a range of potential measures aimed at protecting the European Union's auto industry, including tariff cuts, import quotas and credits against the value of EU automakers' U.S. exports. Equity markets shrugged off the Republican president's latest tariff salvo on Wednesday, while the yen remained on the back foot after the levies imposed on Japan. Following Trump's announcement of higher tariffs for imports from the 14 countries, U.S. research group Yale Budget Lab estimated consumers face an effective U.S. tariff rate of 17.6%, up from 15.8% previously and the highest in nine decades. Trump's administration has been touting those tariffs as a significant revenue source. Treasury Secretary Scott Bessent said Washington has taken in about $100 billion so far and could collect $300 billion by the end of the year. The United States has taken in about $80 billion annually in tariff revenue in recent years. The Trump administration promised "90 deals in 90 days" after he unveiled an array of country-specific duties in early April. So far, only two agreements have been reached, with Britain and Vietnam. Trump has said a deal with India was close. Massachusetts Governor Maura Healey, a Democrat, blasted Trump for his "failed trade war". "President Trump was elected to lower costs, and all he is doing is raising prices and hurting our businesses," she said in a statement.
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First Post
10-07-2025
- Business
- First Post
Trump announces 50% tariff on Brazil over Bolsonaro's ‘witch hunt' trial
Trump has announced a sharp 50 per cent tariff on imports from Brazil, tying the move to Brazil's trial of former President Jair Bolsonaro and showing how personal ties and political motives are influencing American trade policy. read more US President Donald Trump announced a steep 50 per cent tariff on Brazilian imports Wednesday, linking the move to Brazil's prosecution of former president Jair Bolsonaro, a sign that personal loyalties, not just economics, are driving US trade policy. Unlike his usual tariff declarations citing trade imbalances, Trump's statement specifically tied the tariffs to Bolsonaro's legal troubles. Bolsonaro, accused of plotting to overturn his 2022 election loss, has been described by Trump as a personal friend. STORY CONTINUES BELOW THIS AD 'This trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!' Trump posted on Truth Social, echoing language he's used to describe his own legal battles over efforts to overturn the 2020 US election. Trump addressed the tariff threat directly to Brazilian President Luiz Inácio Lula da Silva, who defeated Bolsonaro in 2022. Bolsonaro testified in June before Brazil's Supreme Court about the alleged coup plot. Judges will hear from 26 other defendants in the coming months, with a ruling expected as early as September. Bolsonaro has already been barred from running for office until 2030. This is a matter for our judicial system: Brazil's VP Brazil's Vice President Geraldo Alckmin dismissed the tariff threat, saying, 'I think he has been misinformed. President Lula was jailed for almost two years. No one questioned the judiciary. This is a matter for our judicial system.' Trump's letter also complained about Brazil's Supreme Court fining social media platforms like X (formerly Twitter) and issuing temporary blocks, calling these actions 'SECRET and UNLAWFUL Censorship Orders.' He said he's launching an investigation under Section 301 of the Trade Act of 1974, which deals with unfair trade practices harming US businesses. Notably, Trump's letter omitted the fact that X is owned by Elon Musk—a major Trump supporter in the 2024 election. Trump himself owns Truth Social, a rival platform. Trump sends tariff letters In addition to Brazil, Trump sent tariff letters Wednesday to seven smaller trading partners: the Philippines, Brunei, Moldova, Algeria, Libya, Iraq, and Sri Lanka. None poses a significant economic threat to the US. This week, he imposed a 35% tariff on Serbia, citing it as an example of how trade policy can influence peace efforts. While the European Union said it hasn't received new tariff notices, Trump has already targeted Japan and South Korea with 25% import taxes earlier in the week. Talks are going on with India, for a possible trade deal. STORY CONTINUES BELOW THIS AD Under Trump's new plan, imports from Libya, Iraq, Algeria, and Sri Lanka face 30% tariffs, while goods from Moldova and Brunei will be taxed at 25%, and imports from the Philippines at 20%. All new tariffs are set to begin August 1. Most economists warn Trump's tariffs could worsen inflation and slow economic growth. Nonetheless, Trump argues tariffs help rebalance trade, fund his tax cuts, and bring manufacturing jobs back to the US. Speaking recently with African leaders, Trump even claimed tariffs can be used to settle global disputes, saying: 'You guys are going to fight, we're not going to trade. And we seem to be quite successful in doing that.'
