New Delhi, July 31 -- US President Donald Trump has threatened to impose 50% tariffs on Brazilian goods starting August 1, linking the move to the prosecution of former Brazilian President Jair Bolsonaro. The threat, described by Brazilian President Luiz Inacio Lula da Silva as "unacceptable blackmail," has sharply escalated tensions between the two nations.

Trump reportedly told Lula in a July 9 letter that the Bolsonaro trial was a "Witch Hunt that should end IMMEDIATELY".

Lula, in an interview with The New York Times, insisted Brazil would not be intimidated, despite the economic risks.

"There's no reason to be afraid. I am worried, obviously, because we have economic interests, political interests, technological interests. But at n...