Overview

• President Trump ordered a sweeping 50% tariff on all Brazilian imports from August 1 and launched a Section 301 investigation into Brazil’s trade practices.
• Brazil’s Foreign Ministry summoned US chargé d’affaires Gabriel Escobar twice in protest of the tariff announcement and a US embassy statement backing Jair Bolsonaro.
• Lula’s government has activated its Economic Reciprocity Law to prepare matching tariffs if Washington’s duties take effect.
• The Brazilian real dropped more than 2% against the dollar following news of the tariff, reflecting investor concern over a possible trade escalation.
• Brazil is pressing Washington for direct talks before the August 1 deadline in an effort to defuse the diplomatic standoff.