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Trump’s 50% tariff threat to Brazil raises alarm in footwear industry

Jul 11, 2025 United States

Donald Trump has threatened Brazil with a 50% tariff starting on the 1st of August over charges against its former right-wing president Jair Bolsonaro. The Brazilian footwear industry has already voiced its concern

According to a letter sent by US President Donald Trump to Brazil’s President Luiz Inácio Lula da Silva, Brazilian goods may face a staggering 50% tariff from the 1^stof August. Trump claimed that Lula da Silva is conducting a “witch hunt” against its former right-wing president, Jair Bolsonaro, which “should end IMMEDIATELY!”. Bolsonaro is currently facing trial for allegedly attempting to stage a coup against Lula.

In a post on X, Brazil’s president vowed to reciprocate if Trump were to follow through with his threat. “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage”. “Any measure to increase tariffs unilaterally will be responded to in light of Brazil’s Law of Economic Reciprocity”, he added.

The Brazilian Footwear Industries Association (Abicalçados) has already reacted with surprise and concern. “In the first half of the year, we were gradually regaining ground in the United States market, despite all the instability”, said Haroldo Ferreira, the organisation’s Executive President.

In fact, imports from Brazil to the US have been subject to a minimum tariff of 10% since Trump announced “reciprocal” tariffs in April, the baseline rate he has applied to most goods from most countries during the 90-day negotiation period.

Ferreira continued: “President Trump’s announcement of new tariffs from the 1^st of August has poured cold water over the Brazilian footwear sector”. Just last month, the country’s footwear industry recorded a 24.5% increase in exports compared to June 2024. This was driven by an almost 40% increase in exports to the US, the sector’s main destination.

It should be noted that unlike the 21 other countries that have received letters from Trump this week, Brazil ran a 6.8 billion US dollars trade surplus with the US in 2024, meaning the US exported more goods to there than it imported from there.

Other Letters

On Wednesday, Trump sent letters to several other countries, including the Philippines, Sri Lanka, Moldova, Brunei, Algeria, Libya and Iraq. Goods shipped to the United States from these countries will be subject to import tariffs of up to 30%.

Although the rates imposed on goods from Sri Lanka, Moldova, Iraq and Libya were lower than those announced in April, the rates imposed on goods from the Philippines and Brunei were higher. Meanwhile, the rate on goods from Algeria remained at 30%, the same as in April.

Image Credits: uschamber.com

Brazil United States Economy Footwear Organisations Tariffs Trump tariffs