
07/28/2025
Geopolitical tensions between Brazil and the U.S. have surged in recent weeks across a range of different issues. Amid his efforts to rewrite the rules of U.S. trade policy, President Donald Trump threatened 50 percent tariffs on Brazilian goods beginning on Aug. 1. But while the move is partially driven by Trump’s desire to negotiate new tariff rates on many countries as part of his global trade war, it is also driven by political reasons that are specific to Brazil.
Personalities play a role as well. Both Trump and Brazilian President Luiz Inacio Lula da Silva are old and stubborn men who dislike ever giving the appearance of losing or backing down. They also don’t like or trust each other. However, the fight goes beyond personalities and the specifics of Trump versus Lula. As columnist James Bosworth writes, it’s part of a longstanding and longer-term contest for regional influence between the U.S. and Brazil.
Trump and Lula’s spat is just the latest in a long battle for regional influence between the U.S. and Brazil. The next battleground may be over the U.S. dollar.