A Stealth Target

The 50 per cent tariff on many Brazilian exports to the United States is one of the highest rates that President Donald Trump has imposed as part of his global trade war.

- Rogerio Studart

Trump has quite plainly stated that the crippling levy is an attempt to intimidate Brazil’s justice system into halting the criminal prosecution of former Brazilian president Jair Bolsonaro for inciting a failed coup in 2023. To underscore this point, the administration placed sanctions on Alexandre de Moraes, the Brazilian Supreme Court judge overseeing Bolsonaro’s trial.

But Trump’s egregious attack on Brazil’s democratic institutions is aimed not only at bending a sovereign country’s judiciary to his will, but also at beating back a rising challenge to the dollar-denominated financial order. Shortly after Trump first threatened Brazil with a 50 per cent tariff, the US launched a formal investigation into the country’s “unfair” trade practices, with a focus on digital trade and electronic-payment services. This implies that Pix, Brazil’s instant digital payment system, is a threat to Trump’s vision of power.