Brazil Roundup: Tariff tensions with US, Bolsonaro house arrest, $90 billion transport plan

Worry looms as hefty 50% US tariffs take effect August 6

Brazil is bracing for impact as the US’s unprecedented 50% tariffs on most imported goods take effect on August 6. Only 700 goods will be exempted from the sweeping tariff, which is projected to affect R$175 billion of Brazil’s annual export revenue. US President Donald Trump’s move places additional pressure on Brazil’s already strained economy, which is facing a 76.1% debt-to-GDP ratio and a R$104 billion fiscal deficit.

Supreme Court orders house arrest of ex-president Bolsonaro

Former Brazilian president Jair Bolsonaro has been placed under stricter house arrest after violating earlier court-imposed restrictions related to his ongoing coup plot trial. The Supreme Court had previously barred Bolsonaro from using social media and confined him to nighttime and weekend house arrest. However, he continued to communicate through the social media accounts of his children and supporters, prompting the court to tighten the measures. The development comes as the US prepares to enforce a 50% tariff on nearly all Brazilian exports — a move by President Donald Trump that observers link to the alleged political persecution of Bolsonaro, with whom he has close ties.

Pushback from Brazil as WTO intervention sought over US tariffs

Brazil is preparing to formally contest the US’s unprecedented 50% tariffs at the World Trade Organisation (WTO) a day before they take effect on August 6. These tariffs impact roughly 35% of Brazil’s exports to the US, although key products like energy and certain minerals are excluded. Brazil’s Chamber of Foreign Trade approved a proposal to launch formal consultations at the WTO, the first step in a dispute resolution process. The council of ministers has referred the matter to President Luiz Inácio Lula da Silva, who will decide when to proceed.

Brazil launches $90 billion plan to transform urban transport

Brazil has unveiled a historic R$500 billion (US$90 billion) national plan to overhaul urban public transport over the next 30 years, targeting 21 major metropolitan regions that house nearly half the country’s population. According to a new study by the Brazilian Development Bank (BNDES) and the Ministry of Cities, the strategy aims to add 2,500 kilometres of rapid transit — including metro, rail, BRT, and bus corridors — by 2054. The goal is to ensure 80% of residents live within one kilometre of a transit station.

Lula condemns US tariffs as ‘economic blackmail’

Brazilian President Luiz Inácio Lula da Silva has accused the US of using economic pressure for political purposes, calling the 50% tariff on Brazilian goods “economic blackmail.” Speaking at a Workers’ Party event in Brasília, Lula condemned the move by US President Donald Trump and said Brazil would not bow to “unequal treatment.” The tariff, set to take effect on 6 August, would be the highest the US has imposed on any country.