US tariffs on Brazil interfere domestic politics, damage diplomatic trust - experts

BRASILIA: ⁠⁠⁠⁠⁠⁠⁠Brazilian experts have asserted that the United States is leveraging tariffs as a weapon to pressure Brazil's economy and politics, undermining diplomatic relations between the countries.

AI Brief

The US raised tariffs on Brazilian goods to 50%, prompting backlash from Brazil and accusations of political motives.
Brazil claims the US is using trade to interfere in its internal affairs, especially regarding Bolsonaro's prosecution.
Experts warn that weaponising trade harms free trade and diplomacy; Brazil has appealed to the WTO over the tariffs.

Tensions between the two sides have been rising since April, when the U.S. began to impose 10 percent additional tariffs on Brazilian goods. On July 9, U.S. President Donald Trump further raised the tariffs to 50 percent, which went into effect on Aug 6.

Last week, Trump called Brazil a "horrible trading partner," saying the trial against former Brazilian President Jair Bolsonaro was a "political execution."

Facing the unilateral threat, Brazilian President Luiz Inacio Lula da Silva said his country will not back down. On Thursday, Lula rebuked the U.S. president, saying Trump "should not meddle" in Brazil's internal affairs.

Robson Valdez, a Brazilian researcher in international relations, said the U.S. tariffs have clearly been imposed with political intentions and attempt to interfere with Brazil's domestic politics and judicial procedure.

"The prerequisite set by the U.S. to negotiate with Brazil is the suspension of criminal procedures against former Brazilian President Jair Bolsonaro, who has been prosecuted for an attempted coup on Jan 8, 2023. Therefore, as a matter of fact, the U.S. government is using tariffs as their weapon to put more pressure on Brazil's economy and politics," said Valdez.

Some analysts believe that using trade as a tool to press other countries will not only harm free trade, but also weaken diplomatic mutual trust.

"The global economy and some international diplomacy could be damaged. This is because, usually, trade will open the door to another country's diplomacy. Abusing tariffs will bring tensions to many countries worldwide, including the United States," said Daniela Freddo, a Brazilian economist.

In mid-August, Brazil appealed to the World Trade Organization (WTO) to challenge steep tariffs imposed by the U.S. on Brazilian exports to the United States, accusing the U.S. of flagrantly violating the core commitments assumed by that country at the WTO.