Brazil And Seven Others Hit By Tariff Letters
Trump revealed letters to the leaders of the Philippines, Brunei, Moldova, Algeria, Iraq, Libya and Sri Lanka on his social media platform, Truth Social. The letters stated that the Philippines would face a 20% tariff, Brunei and Moldova 25% and Libya, Iraq, Algeria and Sri Lanka 30%.
Brazil was singled out for the steepest penalty, 50% tariffs. In his letter to Brazilian President Luiz Inácio Lula da Silva, Trump accused Brazil of 'insidious attacks on Free Elections and basic American freedoms,' calling the country's actions 'an international disgrace.'
Responding on platform X, President Lula warned that 'any unilateral action to increase tariffs will be met with reciprocal economic measures under Brazilian law.'
Brazil's Vice President Geraldo Alckmin called the move unfair. 'I see no reason to raise tariffs on Brazil. Brazil is not a problem for the United States, this must be made clear,' he said. Alckmin also noted that while the US runs a global trade deficit, it enjoys a trade surplus with Brazil.
The move escalates Trump's recent tariff spree, signalling a hardline stance on trade as his re-election campaign intensifies. Related
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The executive order that redefined trade On January 20, 2025—the very first day of his second term—President Trump signed a sweeping Executive Order instructing the Secretary of Commerce and the Treasury Secretary to ensure that every possible tool be used to extract maximum revenue from global trade. Section B of the second paragraph of that Executive Order makes the objective brutally clear: to increase tariffs, duties, levies, and restrictions to yield up to US$400 billion in revenue for the US government within the calendar year. This is not trading policy. It is economic conquest. Unlike the tariffs of previous administrations that targeted dumping or strategic industries, Trump's approach is indiscriminate. It is premised on the idea that friends are easier to squeeze than enemies because they are less likely to retaliate in kind. 'It's easier to get more from friends—they won't fight back,' he was heard saying in another portion of the leaked audio. This has led to punitive tariffs on countries like Japan, South Korea, Germany, and Malaysia—nations that have historically enjoyed stable ties with the United States. Tariffs as tools of tribute Trump's method of tariff pummelling has three consistent features: First, it begins with a shock tariff—a sudden, often unannounced imposition of duties. This was evident on July 8, 2025, when the White House abruptly imposed 25 percent tariffs on key sectors from Asean, Japan, and South Korea, well before the previously floated deadline of August 1. The idea is to throw diplomatic teams off balance and create maximum psychological leverage. Second, Trump offers exemptions or 'carve-outs' as bargaining chips. Malaysia, for example, found its exports of semiconductors and integrated circuits—making up the bulk of its US$80 billion two-way trade with the US—exempted from the new tariffs. But this was no accident. Malaysia had just announced the purchase of 30 Boeing aircraft. The pattern is unmistakable: pay tribute in kind (defence purchases, foreign direct investments, or public endorsements of Trump), and you might receive reprieve. Third, he escalates the pressure through vague threats of future penalties. These are often announced at rallies or in interviews, keeping the world perpetually guessing about what comes next. The unpredictability is intentional, a form of controlled chaos that he believes gives America the upper hand in negotiations. Why the addiction? Trump's use of tariffs is not simply strategic. It is compulsive. The psychological high he receives from watching countries scramble to adjust, to mollify, or to appease him, feeds into a cycle of economic brinkmanship. His personal satisfaction seems rooted not in policy outcomes but in submission rituals—press conferences by foreign leaders pledging allegiance to US supply chains, or headlines about retaliatory restraint from trading partners. As former National Security Adviser John Bolton once observed, Trump sees foreign policy as a series of transactions. But in his second term, it has evolved into something more primal. The leaked audio proves that Trump sees economic policy as theatre—and he, the self-appointed master of ceremonies. The world is a stage for his psychological dominance. The friends he loves to punish The irony of Trump's doctrine is that it targets allies far more often than adversaries. China, for all its geopolitical rivalry with the US, remains cautiously respected by Trump for 'playing hardball.' On the other hand, allies like Canada, Germany, and South Korea are routinely slapped with tariffs not because they are unfair traders—but because they are perceived as 'too comfortable' under the US umbrella. In Asean's case, Trump's tactics are creating deep anxiety. Malaysia, as Group Chair of Asean and Chief Coordinator of Asean-China relations, finds itself pulled in multiple directions. While attempting to chart a neutral and balanced foreign policy, it is simultaneously exposed to unilateral US economic coercion. Even though key exports like semiconductors remain exempted, the message is clear: exemptions today can become punishments tomorrow, unless political alignment is made explicit. Revenue as power, not policy The US$400 billion target is not just about balancing America's books. It is about transforming revenue into geopolitical leverage. Trump believes that with enough economic weight, the US can force the world to comply with its rules—whether on trade, technology standards, digital taxation, or military basing rights. The logic is rooted in power, not principle. For Trump, tariffs are not a bridge to negotiation; they are a test of fealty. Countries that comply may get exemptions or defence guarantees. Those that resist face tariffs, travel bans, or diplomatic snubs. This reconfiguration of trade as tribute has turned even America's closest allies into cautious participants in an asymmetric relationship. Asean's narrow path Asean now faces the challenge of balancing Trump's tariff addiction with its own strategic autonomy. The region must avoid being perceived as either too accommodating or too resistant. Countries like Malaysia, Indonesia, and Vietnam must reinforce intra-regional trade, accelerate digital transformation, and deepen supply chain resilience to avoid being trapped in Trump's tariff vise. Track 2 diplomacy, regional summits, and multilateral coalitions—whether through Brics+, Asean+3, or the East Asia Summit—must be mobilised not to oppose the US, but to insulate against its erratic policies. If Trump's first term taught the world about disruption, his second term is teaching them about addiction—to tariffs, tribute, and total control. In conclusion, the Trump Doctrine in 2025 is not just about 'America First.' It is about 'America Extracts.' And as long as this addiction goes unchecked, the world must brace itself—not for another trade war, but for a global system held hostage by a leader who equates economic pain with political gain. * Phar Kim Beng is a professor of Asean Studies and Director of the Institute of Internationalization and Asean Studies at the International Islamic University of Malaysia ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
