Donald Trump's economic adviser, Kevin Hassett, struggled to justify the rationale for “punishing” new tariffs on imports from Brazil during an appearance on ABC’s This Week.
Host Jonathan Karl questioned the rationale behind the new 50 percent tax on Brazilian goods, highlighting the $6.8 billion trade surplus with Brazil last year, and noting that the U.S. hasn’t had a trade deficit with Brazil since 2007.
The Trump administration has argued that tariffs are to counter trade deficits with U.S. trading partners, and the topic arose in a broader discussion of the president’s newly announced tariffs on America’s closest allies, including Mexico, Canada, and the European Union.
“So why, why, why are we putting a punishing 50 percent tariff on Brazil?” asked Karl.
Hassett, speaking from the North Lawn of the White House, began: “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?’”
“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,” he continued.
“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 … been clear about that.”
Karl pounced, noting that the president has been explicit as to why he is imposing such a high tax on Brazil.
Trump expressed his anger in a letter to President Luiz Inacio Lula da Silva that the trial of former president Jair Bolsonaro for his role in an alleged coup to overturn his 2022 reelection loss was a “witch hunt” and should “end immediately.”
The president specifically said the 50 percent tariff was coming in part due to “Brazil’s insidious attacks on Free Elections.”
White House National Economic Council Director Kevin Hassett defended Pres. Trump’s newly unveiled 50% tariff against Brazil, the United States’ second-largest trading partner, claiming the move is part of the administration’s broader tariff strategy. https://t.co/Jh0bHmMyyt pic.twitter.com/G5f1eZo2je
— This Week (@ThisWeekABC) July 13, 2025
Said Karl: “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.”
Hassett jumped in: “I'm agreeing with you. What I'm saying is that … 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.”
Karl persisted: “But can you explain to me, because I find it confusing here … 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?”
“If he thinks it's a national defense emergency or if he thinks it’s a national security threat, that he has the authority under IEEPA,” countered Hassett, citing the International Emergency Economic Powers Act, at the center of a lawsuit over Trump’s “reciprocal” tariffs that is currently before a federal appeals court.
“So, how is it a national security threat that, you know, how Brazil is handling a criminal case against this former president?” pressed Karl.
“Well, that's not the only thing. That's not the only thing. I mean…” a flustered Hassett replied.
“So, what is it? I mean, I've asked what it is,” said Karl. “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.”
Regrouping, Hassett said: “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.”
“But again, as we've just established, we have a trade surplus with Brazil, not a deficit,” said Karl, adding over an interjected “but” from Hassett, “And we've had a surplus with Brazil for 18 years.”
“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,” Hassett argued.
“Okay. I'm still confused, but let me move on,” said Karl, concluding the discussion none the wiser.
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