The U.S. has lifted sanctions on a Brazilian Supreme Court justice previously targeted by President Donald Trump’s administration. This development underscores a rapid diplomatic reset with Brazil as trade tensions ease and relations with President Luiz Inacio Lula da Silva improve.
US Drops Magnitsky Sanctions On Alexandre de Moraes
On Friday, the Treasury Department said it has removed sanctions against the Brazilian Supreme Court Justice Alexandre de Moraes.
He oversaw the criminal case that led to the conviction and imprisonment of former Brazilian President Jair Bolsonaro for attempting to overturn the results of the country’s 2022 election.
Sanctions imposed earlier this year under the Global Magnitsky Act were also lifted on Moraes’ wife, Viviane Barci, and the Lex Institute, a financial entity linked to members of his family.
See Also: Trump Rolls Back Tariffs On Brazil Amid Soaring Coffee And Beef Prices: Cites ‘Ongoing’ Negotiations
Sanctions Once Tied To Bolsonaro Coup Trial
The Trump administration had accused Moraes of abusing judicial power, alleging he authorized arbitrary detentions and restricted free speech while presiding over the Bolsonaro case.
Trump publicly criticized the prosecution as politically motivated and previously described it as a “witch hunt.”
The penalties fueled diplomatic friction between Washington and Brasilia, coinciding with the imposition of steep U.S. tariffs on a range of Brazilian exports earlier this year.
Trump–Lula Rapprochement Drives Policy Shift
The reversal comes as the U.S. has begun rolling back tariffs on Brazilian goods and after Trump and Lula held a phone call that Trump described as “productive,” signaling a reset after months of strain.
Lula said Friday he directly urged Trump to lift the sanctions, framing the issue as one of national interest rather than personal politics. He said the U.S. president asked whether the move would benefit Brazil and he responded that it would strengthen Brazilian democracy, reported Reuters.
A source in Brazil’s presidency told the publication the request involved no concessions, highlighting that there was no exchange or trade-off tied to the decision.
Moraes Calls Decision A Win For Democracy
Speaking at an event in Sao Paulo, Moraes welcomed the Treasury’s move, calling it a victory for Brazil’s democratic institutions, legal system and sovereignty.
He also thanked Lula for intervening on behalf of himself and his family, the report said.
Brazilian markets reacted modestly, with the iShares MSCI Brazil ETF (NYSE:EWZ) posting gains during regular (0.48%) and after-hours trading (0.18%).
Notably, in 2024, Brazilian authorities temporarily banned Elon Musk’s social platform X following disputes with de Moraes over court-ordered account restrictions.
The platform later complied with legal requirements and resumed operations.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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