Chasing Windmills: Trump’s Brazil tariffs and the Latin American ‘backyard illusion’
On 30 July, President Trump issued an executive order raising tariffs on Brazilian goods by 40%, totalling 50% when added to the 10% baseline announced in April. Invoking emergency powers under the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA), the justification wasn’t an economic threat, but Brazil’s domestic legal actions, particularly Supreme Court measures against the spread of misinformation in social media platforms and the trial of former president Jair Bolsonaro, accused of undermining Brazilian democracy. This represents economic coercion, violating the principle of non-intervention, which prohibits interference in the domestic affairs of sovereign states, and WTO rules. The blog focuses on how these trade tariffs are a tool to achieve geopolitical goals in the pursuit of hegemonic leadership. The executive order targeting Brazil breaches US obligations in the GATT: Article II:1(b), which binds it to agreed maximum tariff rates, and Article I:1 (most-favoured-nation treatment), which requires equal treatment of all WTO members. It doesn’t meet the requirements of a national security exception under Article XXI as interpreted by WTO jurisprudence. The measure also breaches Article 23 of the DSU, which prohibits unilateral trade retaliation. More than violating such commitments, the US administration is subverting [...]