Brazilian President Luiz Inácio Lula da Silva criticized US President Donald Trump, asserting that he was only elected to lead the United States, not act as “emperor of the world.” Lula’s remarks came in response to Trump’s announcement of a 50% tariff on Brazilian goods starting August 1, as posted on Trump’s platform, Truth Social, on July 9.
The threat is reportedly linked to Trump’s objection to the trial of his ally, former Brazilian President Jair Bolsonaro, who faces charges related to an alleged coup attempt after losing the 2022 election. If convicted, Bolsonaro could face more than 40 years in prison.
On July 15, tensions escalated further as the US launched an investigation into Brazil’s trade practices. The probe, led by the US Trade Representative, will examine issues including digital trade, ethanol access, and environmental concerns like illegal deforestation.
Trump has a long history of embracing aggressive trade tactics and protectionist policies. But how do tariffs really work—and what are the wider impacts? Click through the following gallery to find out how trade wars can affect you.