Brazilian President Lula threatens to suspend economic deals over Trump’s 50% tariffs

July 9, 2025

US. President Donald Trump on Monday reiterated that countries that don’t make trade deals with the United States will get letters informing them of the tariffs they will be charged if they export products to the United States.

EDITED BY BRIDGET BROWN, ANDREA THOMAS, MICHAEL WARREN, CURTIS YEE, NELL CLARK AND PETER ORSI

Updated 6:53 PM PDT, July 9, 2025

Brazilian President Luiz Inácio Lula da Silva said Wednesday that the 50% tariffs announced by U.S. President Donald Trump would trigger the country’s economic reciprocity law. That allows trade, investment and intellectual property agreements to be suspended for countries that harm the South American nation’s competitiveness.

“Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone,” Lula said.

Trump cited what he called unfair treatment of Brazilian former President Jair Bolsonaro as he announced the new 50% duties on import goods from the South American nation, showing that personal grudges rather than simply economics are sometimes driving his use of tariffs.

Bolsonaro is on trial in Brazil, accused of trying to overturn his 2022 election loss.

In a forceful statement, Lula defended the country’s legal system and said that the U.S. has had a trade surplus of more than $410 billion with Brazil over the past 15 years.

What to know about Bolsonaro’s trial now that he has testified over an alleged coup plot

By  MAURICIO SAVARESE

SAO PAULO (AP) — Brazil’s former president Jair Bolsonaro has finally testified before the country’s Supreme Court over an alleged plot to remain in power and overturn the 2022 election result.

After Bolsonaro and 33 allies were charged in February with five counts related to a plan to remain in power, a five-Justice panel of Brazil’s top court opened a first trial for eight of them, including the former leader.

Judges will hear from 26 other defendants in coming months.

The former president has repeatedly denied the allegations and said he is the target of political persecution, but kept a soft tone in his testimony on Tuesday.

The case stems from a Jan. 8, 2023 riot, when the Supreme Court, Congress and the Presidential Palace in Brasilia, the capital, were stormed by thousands of Bolsonaro supporters. Police say the uprising — which came after current President Luiz Inácio Lula da Silva was sworn in — was an attempt to force military intervention and oust the new president.

If convicted for the alleged coup, Bolsonaro could be sentenced to up to 12 years. When combined with the other charges, the accused might face decades behind bars.

Here’s what is next in the trial:

Testimonies

The testimonies of the eight defendants is the final stage of the evidence collection phase, but their attorneys are allowed to request additional searches to help their case. Legal experts have said it is unlikely that Justice Alexandre de Moraes, the presiding judge and a member of the panel, will allow it. The evidence phase will be deemed complete once de Moraes decides on all requests.

Final allegations

Fifteen days after the collection phase is finished, Brazil’s attorney-general will be allowed to present his final allegations. The attorneys of the defendants will get the same chance. Each of those allegations are expected to take several hours or even days. This needs to be completed before July, when Brazil’s Supreme Court enters its recess until August. As soon as the final allegations stage is completed, the sentencing phase starts.

Sentencing

A Supreme Court panel of five judges will decide whether Bolsonaro and his allies are guilty or not. The judges who will decide the future of Brazil’s former president are de Moraes, Cármen Lúcia, Cristiano Zanin, Flávio Dino and Luiz Fux. All of them had public battles with Bolsonaro. De Moraes was the primary judge in several cases against the far-right leader, while Zanin and Dino joined the court as Lula’s appointees. Lúcia and Fux were also targets of Bolsonaro during their respective tenures chairing the electoral court and the Supreme Court. Should Bolsonaro be convicted, these judges will also decide his penalty.

What if he’s found guilty

Bolsonaro would still be able to appeal to Brazil’s Supreme Court full panel. Brazil’s top prosecutor could do the same if the former president is not convicted on all counts. Before any potential jail time, Bolsonaro’s lawyers could further delay the conclusion of the trial by asking for clarifications on the decisions of each judge. Legal experts have said all these steps are likely to be concluded by the end of the year.

Other news we’re following:

• Trump discussed trade with African leaders: Trump promised five West African leaders a pivot from aid to trade during a White House meeting Wednesday as the region reels from the impact of sweeping U.S. aid cuts. Trump said he sees “great economic potential in Africa” as the leaders of Liberia, Senegal, Gabon, Mauritania and Guinea-Bissau boasted of their countries’ natural resources and heaped praise on the U.S. president. The surprise meeting came weeks after U.S. authorities officially dissolved the U.S. Agency for International Development.
• Where the US stands with trade deals: Trump and his advisers promised a lightning round of trade deals when they paused tariffs in April, with White House trade adviser Peter Navarro predicting “90 deals in 90 days.” But as of Wednesday there have been only two — one with the United Kingdom and one with Vietnam. Trump has also announced the framework for an agreement with China, the details of which remain fuzzy.
• Conflict of interest: Commerce Secretary Howard Lutnick oversees the federal government’s efforts to monitor and predict the weather, but he also ran a financial firm that stands to benefit if the administration privatizes government weather forecasting. Deadly weekend flooding in central Texas has drawn a spotlight to budget cuts and staff reductions at the National Weather Service and the National Oceanic and Atmospheric Administration.
• Tariff deadline extended: While Trump and his advisers promised a lightning round of trade deals when they paused tariffs in April, only two deals stand — one with the United Kingdom and one with Vietnam. Trump has also announced the framework for a deal with China, the details of which remain fuzzy. The deadline was extended to Aug. 1.