Trump’s tariff hike on Brazil targets its digital sovereignty, pressuring it to ease Big Tech regulations. Backed by tech giants and Bolsonaro allies, the move drew backlash from Brazil’s government and civil society defending democratic control over tech platforms.
On August 1st, the 50% increase in trade tariffs on Brazil announced by US President Donald Trump came into effect despite an existing US trade surplus. In a letter sent to the Brazilian government on July 9th, the president condemned what he called a “witch hunt” against former far-right Brazilian president Jair Bolsonaro. Bolsonaro and his allies are being prosecuted by the Federal Supreme Court for attacking the Brazilian electoral process and attempting a coup d'état. While a number of countries are facing similar trade pressure from the US, the campaign against Brazil is one of only a few places where the pressure is an attempt to weaken rules against big tech.
A Pressure Campaign Against Digital Rules in Brazil
Trump's letter accuses Brazil, without evidence, of practicing "insidious attacks on free elections and the fundamental free speech rights of Americans." The document also alleges that the Brazilian Supreme Court "has issued hundreds of secret and unlawful censorship orders to US social media platforms" following allegations from tech leaders like Elon Musk. Along with the announcement of the new tariffs, the United States Trade Representative opened a formal investigation that includes digital trade and creates pressure on Brazil to weaken enforcement of rules against US tech companies.
The Trump administration's pressure campaign has the support of big tech. The Computer & Communications Industry Association (CCIA), which represents tech companies, welcomed the US offensive and has separately criticized an AI bill currently under consideration, claiming that it would harm the competitiveness of US companies in relation to Chinese companies. In addition to the regulatory agenda, big tech is concerned about the development of a Brazilian government digitization strategy, as it involves the construction of public digital infrastructure with the aim of reducing technology costs and expanding citizens' access to public services. CCIA has asked the US government to monitor the situation to "ensure the rules associated with Brazil's digital public infrastructure plans do not require US companies to partner with or purchase from domestic companies."
The Reaction from Brazil
The Brazilian government and civil society reacted with criticism, pointing out that the announcement and statement were direct interference in the country's internal affairs. President Lula responded that "Brazil is a sovereign country with independent institutions that will not accept being taken for granted by anyone." Regarding the allegations related to large digital platforms, the president added: "In Brazil, freedom of speech is not mistaken for aggression or violent behavior. To operate in our country, every company, local or foreign, must be subject to Brazilian legislation." The Brazilian people have also reacted strongly against this offensive. A mass protest on July 10th, initially launched to defend a proposal by the Lula government to tax the super-rich, brought more than 15,000 people to the streets and took up the banner of defending Brazil's sovereignty. At the same time, a letter in defense of national sovereignty was signed by more than 200 academic, professional, civil society and social movement organizations.
The Network for Digital Sovereignty (which brings together dozens of collectives, movements, and civil society entities) sent a letter to President Lula advocating for the creation of a National Plan for Digital Sovereignty "that can leverage and share the evidence, proposals, and solutions collectively developed by this vibrant, creative network committed to Brazil's future." The Rights on the Net Coalition, a forum of more than 50 organizations defending digital rights, criticized the US attack, pointing out how the pressure aims to "prevent the application or updating of rules on digital platforms that could eventually generate more costs for implementing regulations in the digital environment."
The struggle to guarantee digital rights has taken on an important role in mobilizing support for the country's sovereignty and the self-determination of its people. The battle over the data economy is closely linked with the country's efforts to ensure food, health, ecological and military sovereignty.
The Far-Right and Regulation of Technology Companies
Trump's measure was coordinated with members of the Brazilian far right, especially former President Jair Bolsonaro and his family. His son, Congressman Eduardo Bolsonaro, is in the US and has made public statements in support of the US pressure. Allies came out in defense of Bolsonaro, with Brazilian parliamentarians holding a demonstration in the Chamber of Deputies on July 22nd, waving Donald Trump's flag. The pressure has implications for Brazilian presidential politics with an upcoming election in 2026.
The far-right in Brazil has recently acted as a defender of the large digital platforms, resisting new regulations that seek transparency and accountability. In May 2023, digital platform companies, in alliance with far-right parliamentarians, succeeded in creating pressure on the Chamber of Deputies, postponing the vote on a platform regulation bill through heavy advertising campaigns and meetings with parliamentary groups, claiming that the bill would create an Orwellian “Ministry of Truth.” In reality, the bill would change the liability regime for platforms and establish obligations and transparency mechanisms, such as risk assessments.
The tension between tech and the government continued in 2024 and into 2025 as Elon Musk attacked the Supreme Court's orders relating to the coup attempt, which led to the suspension of X’s operation operations in Brazil. January 2025, Meta announced that it was abandoning a series of moderation policies. Sectors of Brazilian civil society began a process of mobilization around the defense of digital platform regulation, and the Brazilian government indicated the creation of a group to work on drafting a new bill. However, in the absence of a law, the Federal Supreme Court is seeking to establish a new interpretation of the Brazilian Civil Rights Framework for the Internet to create a new liability standard.
Democratic Regulation and Digital Sovereignty
Brazilian civil society has been working to defend democratic and sovereign policies and regulations for digital services and infrastructure. More than 100 organizations and collectives created the Legal Internet Campaign earlier this year to promote regulations and policies that guarantee the human and digital rights of individuals and communities and sovereign initiatives. The Rights on the Net Coalition has been campaigning for the regulation of platforms and Artificial Intelligence systems in Brazil, among other issues. In the case of digital platforms, the Coalition called in a statement for the passage of new liability rules.
There is also an agenda in Brazil to develop policies for local technological development, which would require public and community initiatives for data storage and processing with the opportunity to learn from the social and ecological impacts of the big tech companies from the U.S. and China. Such an effort will require work on the multilateral level where there is a common interest in rebalancing the power behind tech.
The tariffs imposed by President Trump against Brazil are ultimately about the ability of governments, judicial institutions, and regulators to address the behaviors of digital platforms, including the amplification of disinformation, hate speech, and threats to democracy sponsored by extreme right-wing forces. Brazil is an important example of resistance to these initiatives, but there is work to be done in creating rules for platforms and AI. Beyond its domestic agenda, Brazil should continue to encourage proposals for international cooperation with other nations that strengthen digital sovereignty and technologies for the promotion of the rights of populations, especially for the marginalized.
This article is adapted from an article originally written in Portuguese and published by the Heinrich Böll Foundation Rio de Janeiro on July 31, 2025. It has been edited for an English language audience.
This article first appeared here: us.boell.org