In the recent flurry of letters sent to different countries setting new tariff rates, President Trump has raised eyebrows for several reasons. The President’s letter to Brazil has gained the most attention in this latest round, stating he will impose a 50% tariff starting on August 1 on all goods exported from Brazil to the United States. Not only did this letter indicate an “unfair” trade relationship, it also included the issues of “insidious attacks on free elections, and the fundamental free speech rights of Americans.”
On April 2, the Trump Administration released a chart that outlined the “Tariffs Charged to the U.S.A., including Currency Manipulation and Trade Barriers.” The stated rate that the Administration identified for the country of Brazil sat at 10%, indicating one of the lowest rates identified for reciprocal tariffs.
Therefore, people must explore the other claims made in this letter. In the President’s reference to “insidious attacks on free elections,” he identifies the prosecution of former Brazilian president, Jair Bolsonaro, as a political “witch hunt” that is an “international disgrace.”
The letter also references the attacks on American’s free speech rights, which most in the United States certainly would have concerns about. Here, it appears the President takes issue with recent decisions in Brazil to hold social media companies liable for user generated content hosted on their sites. With the stated effort of limiting harmful content online, the Brazilian government has mandated that social media companies must remove posts that fit categories outlined in legal and judicial rulings. Due to its refusal to comply with government mandates around removing certain accounts, X was banned in the country last year. The decision to limit posts in the United States would remain with the social media companies, as Brazilian law has no force within the U.S.
While the continually shifting nature of the Trump Tariffs has created uncertainty in the markets, one thing remains clear. Despite claims that the tariffs are simply designed to reign in trade imbalances, the Administration remains interested in utilizing this economic tool for a variety of reasons. From political preferences, to illegal goods, immigration, reducing Chinese influence, and more, the Administration believes they can flex the United States' economic muscle to reshape the world.
By: Tim Horgan, WACNH Executive Director
