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Trump avoided his standard form letter with Brazil, specifically tying his tariffs to the trial of Bolsonaro, who is charged with trying to overturn his 2022 election loss. Trump describes Bolsonaro as a friend and hosted the former Brazilian president at his Mar-a-Lago resort when both were in power in 2020.

"This Trial should not be taking place," Trump wrote in the letter posted on his social media site. "It is a Witch Hunt that should end IMMEDIATELY!"

There is a sense of kinship as Trump was indicted in 2023 for his efforts to overturn the results of the 2020 U.S. presidential election. The U.S. president addressed his tariff letter to Brazilian President Luiz Inacio Lula da Silva, who bested Bolsonaro in 2022.

Bolsonaro testified before the country's Supreme Court in June over the alleged plot to remain in power after his 2022 election loss. Judges will hear from 26 other defendants in coming months. A decision could come as early as September, legal analysts say.

Brazil's vice president, Geraldo Alckmin, said he sees "no reason" for the U.S. to hike tariffs on the South American nation.

"I think he has been misinformed," he said. "President Lula was jailed for almost two years. No one questioned the judiciary. No one questioned what the country had done. This is a matter for our judiciary branch."

Tariffs are personal

Trump also objected to Brazil's Supreme Court fining of social media companies, saying the temporary blocking last year amounted to “SECRET and UNLAWFUL Censorship Orders.” Trump said he will launch an investigation as a result under Section 301 of the Trade Act of 1974, which applies to companies with trade practices that are deemed unfair to U.S. companies.

Among the companies the Supreme Court fined was X, which was not mentioned specifically in Trump's letter. X is owned by Elon Musk, Trump's multibillionaire backer in the 2024 election whose time leading Trump's Department of Government Efficiency recently ended and led to a public feud over the U.S. president's deficit-increasing budget plan. Trump also owns a social media company.

The Brazil letter was a reminder that politics and personal relations with Trump matter just as much as any economic fundamentals. 

The tariffs starting Aug. 1 would be a dramatic increase from the 10% rate that Trump levied on Brazil as part of his April 2 announcement. In addition to oil, Brazil sells orange juice, coffee, iron and steel to the U.S., among other products. The U.S. ran a $6.8 billion trade surplus with Brazil last year, according to the Census Bureau.

Trump initially announced his broad tariffs by declaring an economic emergency, arguing under a 1977 law that the U.S. was at risk because of persistent trade imbalances. That rationale becomes problematic in this particular case, as Trump is linking his tariffs to the Bolsonaro trial and the U.S. exports more to Brazil than it imports.

Smaller trade partners

Trump also sent letters Wednesday to the leaders of seven other nations. None of them — the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka — is a major industrial rival to the United States.

Most economic analyses say the tariffs will worsen inflationary pressures and subtract from economic growth, but Trump used the taxes as a way to assert the diplomatic and financial power of the U.S. on both rivals and allies.

His administration promised the taxes on imports will lower trade imbalances, offset some of the cost of the tax cuts he signed into law on Friday and cause factory jobs to return to the United States.

Trump, during a White House meeting with African leaders, talked up trade as a diplomatic tool. Trade, he said, "seems to be a foundation" for him to settle disputes between India and Pakistan, as well as Kosovo and Serbia.

"You guys are going to fight, we're not going to trade," Trump said. "And we seem to be quite successful in doing that."

On Monday, Trump placed a 35% tariff on Serbia, one of the countries he used as an example of how fostering trade can lead to peace.

Tariff uncertainty returns 

Officials for the European Union, a major trade partner and source of Trump's ire on trade, said Tuesday that they are not expecting to receive a letter from Trump listing tariff rates. The Republican president started the process of announcing tariff rates on Monday by hitting two major U.S. trading partners, Japan and South Korea, with import taxes of 25%.

According to Trump's Wednesday letters, imports from Libya, Iraq, Algeria and Sri Lanka would be taxed at 30%, those from Moldova and Brunei at 25% and those from the Philippines at 20%. The tariffs would start Aug. 1.

The Census Bureau reported that last year that the U.S. ran a trade imbalance on goods of $1.4 billion with Algeria, $5.9 billion with Iraq, $900 million with Libya, $4.9 billion with the Philippines, $2.6 billion with Sri Lanka, $111 million with Brunei and $85 million with Moldova. The imbalance represents the difference between what the U.S. exported to those countries and what it imported.

Taken together, the trade imbalances with those seven countries are essentially a rounding error in a U.S. economy with a gross domestic product of $30 trillion.