On Wednesday, U.S. President Donald Trump imposed new tariffs on seven smaller trading partner countries—the Philippines, Brunei, Moldova, Algeria, Libya, Iraq, and Sri Lanka—and later extended the measure to Brazil, citing “common sense” and “raw numbers” as justification.
“The formula was a formula based on common sense, based on deficits, based on how we have been treated over the years, and based on raw numbers… They are based on very substantial facts and also past history,” Trump told reporters.
The newly targeted nations are not significant contributors to the U.S. trade deficit, but Trump defended the decision, claiming that previous administrations lacked a grasp of economic metrics.
“You look at the past history, we never had anybody in the White House who understood the numbers. We have taken hundreds of billions of dollars in tariffs, and we haven’t even started yet,” he said.
Brazil Hit with 50% Tariff Threat
Later in the day, Brazil, the second-largest steel supplier to the U.S. after Canada, was added to the list. Trump announced a 50% tariff on Brazilian goods, a dramatic escalation that sent the Brazilian real plunging and deepened tensions between Washington and Brasília.
In a letter posted to his social media platform, Trump directly linked the tariff hike to political unrest in Brazil, referencing former president Jair Bolsonaro, who is facing trial for allegedly inciting a coup after losing the 2022 election to Luiz Inacio Lula da Silva.
“Due in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans,” Trump wrote.
The statement marked a rare merging of trade and political messaging. Trump has openly supported Bolsonaro, who modeled his presidency after Trump’s and has appealed to the former U.S. leader for help amid mounting legal troubles. Bolsonaro’s role in Brazil’s post-election riots has drawn comparisons to the January 6 Capitol insurrection in Washington.
Originally, Brazil was slated for a 10% tariff under Trump’s “reciprocal” tariffs plan unveiled in April. The 50% rate marks the first significant increase from those earlier announced figures.
While economists have questioned the effectiveness of tariffs on relatively minor trade partners, Trump insisted the moves are necessary to rebalance trade and defend American interests, setting the stage for more possible escalations in the lead-up to the broader U.S.-Africa and U.S.-Latin America summits expected later this year.