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Brazilian President Lula da Silva threatened retaliatory tariffs of up to 50% on US goods in response to Donald Trump's threat to impose similar tariffs on Brazilian imports. Trump's threat, delivered via a social media letter, cited the ongoing trial of former Brazilian President Jair Bolsonaro. Lula deemed Trump's claims inaccurate, highlighting Brazil's trade surplus with the US. While Brazil's finance minister seeks diplomatic solutions, experts warn of potential escalation due to the unprecedented nature of using tariffs to influence another country's judicial process. The tariff threats have already caused concern among Brazilian exporters.

Prepared by Rachel Morgan and reviewed by editorial team.