In July US-Brazil relations took a nosedive, propelling US tariffs on Brazilian products to a new high commencing 1st August. Brazil is now considering its retaliatory options. Stubborn inflation rose in June compared to May and the BCB propelled the SELIC rate a further 25bp to now 15% in response.
US Relations, Visas, and Tariffs
In June US tariffs on Brazilian products remained at the broad 10% level set in April, with the exception of steel at 50%. However, on Friday 18th June, after Brazil’s supreme court decided to issue search warrants and restraining orders against former President Bolsonaro – a key ally of President Trump – the US suddenly revoked the US visas of no less than eight of Brazil’s supreme court justices. Shortly thereafter Trump announced a new 50% blanket tariff on Brazilian goods commencing 1st August, prefacing the announcement with a direct criticism of the supreme court decision against Bolsonaro and calling it a “witch hunt”. Bolsonaro stands accused of plo...
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