Brazil’s President forcefully rebuked Trump after the U.S. leader called the prosecution of Lula’s predecessor, Bolsonaro, a “witch hunt” and hiked tariffs on the Latin American nation.

Brazil downplays effects of US tariffs proposed by President Trump, as leaders signal a cautious willingness to negotiate. Brazil predicts minimal economic impact, despite concerns from exporters. Trump justifies tariffs amidst controversial legal proceedings against former President Bolsonaro.

Trump pledged to impose tariffs on Brazil at a rate as high as 50%. He accused the country of "attacks" on US tech companies and of conducting a "witch hunt" against the far-right former President Jair Bolsonaro, a longstanding ally who is facing prosecution over his alleged role in a plot to overturn the 2022 Brazilian election.

Brazilian President Luiz Inácio Lula da Silva on Wednesday vowed to hit back at Donald Trump’s new 50% tariffs on Brazilian imports, citing the country’s Economic Reciprocity Law.

Bolsonaro is ideologically aligned with Trump, and he has tried to consciously model himself after the US President. Trump is seen at the centre of a global resurgence of right-wing populism that is identifiable by economic nationalism,

In a letter to President Luiz Inácio Lula da Silva of Brazil, Mr. Trump wrote that the new tariffs would take effect on Aug. 1. “The way that Brazil has treated former President Bolsonaro, a Highly Respected Leader throughout the World during his Term, including by the United States, is an international disgrace.”