Trump’s Second Wave of ‘Tariff Letters’ Targets 8 Nations, Brazil Hit with 50% Tariff, Real Plummets
As of 02:11 PM +08 on Thursday, July 10, 2025, U.S. President Donald Trump has escalated his tariff offensive with a second wave of letters, following 14 sent on Monday.
This latest batch, released Wednesday during U.S. stock market hours on his Truth Social platform, covers eight countries.
Trump announced that starting August 1, 2025, the U.S. will impose a 25% tariff on products from Brunei and Moldova, 30% on goods from Algeria, Iraq, and Libya, and 20% on those from the Philippines.
Later, he added a letter to Sri Lanka, setting a 30% tariff on all its products effective the same date.
Trump had hinted at this move Tuesday evening, promising to reveal tariff rates for at least seven countries Wednesday morning, with more to follow in the afternoon.
Two days earlier, he sent letters to leaders of 14 nations outlining new U.S. import tariffs. Simultaneously, he signed an executive order extending the “reciprocal tariff” grace period from July 9 to August 1.
So far, tariffs on 21 countries range from 20% to 40%. Despite this “tariff bomb,” U.S. stocks remained unfazed, with all major indices closing higher, and the Nasdaq rising nearly 1% to a new record. Analysts suggest the market is dismissing these threats, seeing room for deals and negotiations.
Brazil Faces Steep Tariff Hike
After U.S. markets closed Wednesday, Trump posted a letter on Truth Social targeting Brazil, announcing a 50% tariff on all Brazilian products starting August 1, 2025—far exceeding the 10% reciprocal tariff level set on April 2.
In the letter to President Lula, Trump justified the increase, citing Brazil’s prosecution of former President Bolsonaro, urging the government to drop charges of an alleged coup attempt. He called it “political persecution that must end immediately.”
Trump also claimed Brazil’s trade policies create an “unsustainable trade deficit” with the U.S., threatening its economy and security. He mentioned an upcoming investigation into Brazil’s alleged unfair trade practices, particularly “ongoing attacks on U.S. companies’ digital trade activities.”
Following the announcement, the Brazilian Real dropped over 3% against the dollar.
Brazil swiftly responded, labeling it “unfair.” Vice President and Development Minister Geraldo Alckmin stated, “I see no justification for raising tariffs on Brazil. Brazil isn’t America’s problem—emphasis is needed. The U.S. has a trade surplus with us, with eight out of ten exports to the U.S. enjoying zero tariffs.”
He added that the measure is unjust and could harm the U.S. economy due to trade integration. President Lula countered with a statement debunking the “trade deficit” claim, citing official U.S. data showing a cumulative $410 billion surplus in goods and services trade with Brazil over 15 years.
However,Trump noted these tariffs are independent of industry-specific rates. He warned that if these nations raise import taxes on U.S. goods “for any reason,” the U.S. will respond in kind. Conversely, if they remove tariffs and non-tariff barriers, “adjustments might be considered.”
He concluded, “These tariffs may be adjusted up or down based on our relationship with your country. The United States will never let you down.”