Trump prepares emergency declaration to try to justify tariffs against Brazil.

247 - The United States government, under President Donald Trump, is drafting a new emergency declaration to justify imposing import tariffs on Brazil, according to Bloomberg. The measure, which is still being formulated, aims to enable the application of the 50% tariff promised by Trump to a country whose trade situation differs significantly from other tariff targets of the US government.

While countries previously affected by similar sanctions maintain trade surpluses with the US, Brazil registers a deficit. This difference, according to sources familiar with the discussions, would require a new legal basis to support the sanction. The White House's intention is to provide legal backing for the escalation of trade tensions, whose backdrop is political: Trump seeks to demonstrate support for Jair Bolsonaro (PL), his declared ally.

According to one of the sources interviewed for this report, the Office of the U.S. Trade Representative (USTR) informed congressional aides in recent meetings about plans to issue a new emergency declaration. The White House and the USTR have not commented on the matter.

The news had an immediate impact on the market: the real fell by 1% against the dollar, reaching a new low for the day. The 50% tariff announced by Trump is scheduled to take effect on August 1st and, behind the scenes, has been used as a tool to pressure President Luiz Inácio Lula da Silva to stop what the Republican calls a "witch hunt" against Bolsonaro, who is accused of his alleged involvement in attempting to reverse the results of the 2022 elections.

Lula, for his part, has reaffirmed the independence of the Brazilian judiciary and rejected any external interference, including the threat of adopting countermeasures. The White House initiative significantly expands the tariff war led by Trump, highlighting the US president's willingness to use foreign trade tools for geopolitical and ideological purposes.

Meanwhile, the Trump administration initiated an investigation against Brazil based on Section 301, the same law that has already justified sanctions against other countries for trade practices considered unfair. However, this process tends to be more time-consuming. In the past, the Republican administration used the International Emergency Economic Powers Act (IEEPA) to justify tariffs based on significant trade deficits, but the Brazilian case deviates from this pattern: the South American country does not have a trade surplus with the US.

The maneuver has generated criticism within the American Congress itself. A group of Democratic senators sent a letter to the White House warning about what they classify as an "abuse of power" in attempts to interfere in judicial processes abroad. "Interfering in the legal system of another sovereign nation sets a dangerous precedent, provokes an unnecessary trade war, and exposes American citizens and businesses to the risk of retaliation," wrote Senators Jeanne Shaheen (New Hampshire) and Tim Kaine (Virginia).