Sen. Rand Paul (R-Ky.) on Thursday heaped criticism on President Trump’s move to issue a 50 percent tariff on Brazilian goods, in part to protest the legal proceedings against former Brazilian President Jair Bolsonaro, a top Trump ally.
Paul, a foremost Republican critic against Trump’s tariff policy, said the latest tariff, which Trump said would go into effect Aug. 1, could lead to a slippery slope that harms the U.S.’s economic standing and Wall Street.
“I think the idea of haphazardly talking about 50 percent tariffs on a country based on different policies that are going on in that country is chaotic for markets, makes it very hard for businesses to predict,” Paul told reporters at the Capitol. “If it’s done for every country’s current events, it will lead to chaos.”
The Kentucky Republican conceded that he has “sympathy” for the situation and argued that top courts in Brazil frequently abuse their power, including when it comes to Bolsonaro, who faces trial for allegedly plotting a coup after his 2022 loss to current President Luiz Inácio Lula da Silva.
Thousands of Bolsonaro supporters stormed national capital buildings in Brasília days after da Silva was inaugurated, evoking memories of Jan. 6, 2021, in Washington.
Bolsonaro has denied the allegations and has insisted the charges are part of da Silva’s effort to thwart the former president’s return to power.
However, Paul believes there are other levers the administration can pull rather than going after trade in the name of a political ally.
“I think it’s something where we can make … diplomatic statements. We can have outrage. We can withdraw ambassadors,” Paul said. “[There’s] a lot of things we can do, but it’s really why taxes … were intended to be legislation passed by Congress and [there] wouldn’t be every member of Congress outraged at something going on in another country.”
Trump waded into the battle in Brazil on Thursday by lobbing the tariff threat, citing Bolsonaro and fines and lawsuits Brazilian courts have filed against U.S. tech firms and social media sites.
“Please understand that these Tariffs are necessary to correct the many years of Brazil’s Tariff, and Non-Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits Against the United States,” Trump wrote in rolling out the new tariff level.
Brazil previously faced a 10 percent tariff stemming from Trump’s “liberation day” levies. He set an Aug. 1 deadline before the new 50 percent tariff would go into effect.
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