Overview

• President Trump announced a 50% tariff on imports from Brazil starting August 1, a fivefold increase from the 10% levy introduced in April.
• President Lula posted on X that Brazil will not accept interference in its sovereignty and signaled readiness to respond with countermeasures.
• The Brazilian government has postponed any immediate retaliation to conduct a thorough review of domestic inflation, which stood at 5.35% in June.
• Officials are finalizing the scope and rates of Brazil’s retaliatory tariffs, aiming to align their rollout precisely with the U.S. increase.
• The Trump administration is concurrently preparing 20–30% duties on seven other trading partners, including the Philippines and Algeria.