US President Donald Trump announced another round of tariffs against eight countries: Sri Lanka, Algeria, Brunei, Iraq, Libya, Moldova, the Philippines, and Brazil, ranging between 20% to 50%.

Surprisingly, Trump said he will impose 50% tariffs on Brazilian products due to the trial of former Brazilian President Jair Bolsonaro, who is accused of plotting a coup after the election defeat in 2022.

Brazil's current President, Luiz Inácio Lula da Silva, responded with a forceful statement, saying that Trump's tariffs would trigger Brazil's economic reciprocity law, which allows for the suspension of trade, investment, and intellectual property agreements with countries that harm the country's competitiveness.

Trump's tariff decision against Brazil has surprised the market as the United States enjoys a US$6.8 trade surplus with Brazil, leading analysts to believe that personal relationships with Trump matter as much as any economic facts.