W.H. Hassett on Unveiled 50% Tariff Against Brazil: The Move Is Part of the Admin’s Broader Tariff Strategy

KARL: “Well, as you know, a lot of economists say that the inflation will be coming and that there was — there were certainly a lot of exports that were, I mean, imports that were brought in in the anticipation that tariffs would be placed. But let me — let me ask you about one new set of tariffs that he announced on Brazil. 50% new tariff on Brazil. Brazil had a $6.8 billion surplus last year. In fact, the U.S. hasn’t had a trade deficit with Brazil since 2007, I mean, almost two decades. So why, why, why are we putting a punishing 50% tariff on Brazil?”
HASSETT: “Well, bottom line is, the president has been very frustrated with negotiations with Brazil and also with the actions of Brazil. In the end, though, you know, we’re trying to put America first. I think that a lot of people, when I’m talking to negotiators from other countries, at some point they’ll say, ‘What did we do wrong?’ And what I’m trying to get — the message we’re all trying to get across is this is about America getting itself ready for the golden age by getting our house in order, by getting our tariff and trade policy and tax policy exactly where it needs to be for a golden age. And normally, it’s not necessarily about a specific country, but with Brazil, it is. Their actions have shocked the president at times, and he’s made — been clear about that.”
KARL: “But I don’t — I don’t understand how you’re saying it’s about America, because the president has made it quite clear that what he’s upset about is how the Brazilian Supreme Court has handled the criminal case involving former President Bolsonaro. I mean — “
HASSETT: “I’m agreeing with you. What I’m saying is that what I’ve been saying with most countries was that it’s really about us getting the tariffs in order. And I think that this tariff for Brazil is a lot higher because of the president’s frustration with Bolsonaro. And the fact that Bolsonaro himself — you know, anyway — “
KARL: “But can you explain to me, because I find it confusing here, what — on what authority does the president have to impose tariffs on a country because he doesn’t like what that country’s judicial system is handling a specific case? I mean, how — how is that — “
HASSETT: “If he thinks it’s a national defense emergency or if he thinks it’s a national security threat, then he has the authority under IEEPA.”
KARL: “So, how is it a national security threat that, you know, how Brazil is handling a criminal case against this former president?”
HASSETT: “Well, that’s not the only thing. That’s not the only thing. I mean — “
KARL: “So what is it? I mean, I’ve asked what it is. I mean, it seems that that’s what President Trump’s talking about. He’s talking about his anger and his frustration, he’s been quite candid about it, with the Bolsonaro case.”
HASSETT: “Right. Well, the bottom line is that what we’re doing absolutely collectively across every country is we’re onshoring production in the U.S. to reduce the national emergency that is — that we have a massive trade deficit, that’s putting it at risk should we need production in the U.S. because of a national security crisis. And this is part of an overall strategy to do that.”
KARL: “But again, as we’ve just established, we have a trade surplus with Brazil, not a deficit. And we’ve had a surplus with Brazil for 18 years.”
HASSETT: If you look at an overall strategy, if you don’t have an overall strategy for this, then there’ll be trans shipping and everything else, and you won’t achieve your objectives.”