U.S. President Donald Trump has announced a sweeping 50% tariff on all imports from Brazil, effective August 1. The decision follows escalating tensions with Brazilian President Luiz Inácio Lula da Silva, who recently criticized Trump, calling him an “emperor.” The move is also seen as a response to Brazil’s stance on the prosecution of former President Jair Bolsonaro and alleged suppression of free speech. Brazil has threatened to retaliate with its own tariffs. The decision has already impacted Brazil’s currency and stock market, and analysts warn it may drive up food prices in the U.S.