Overview

• President Trump implemented 50% tariffs on Brazilian goods, citing an alleged political 'witch-hunt' against Jair Bolsonaro and unfair trade practices.
• Fernando Haddad said Brazil may sue in U.S. courts over the tariff legality and affirmed the government will not pursue lobbying.
• Coffee costs are up 14.5% from a year ago, the U.S. sources about 35% of its unroasted beans from Brazil, and further increases are expected.
• JM Smucker reported a 22% drop in coffee profits in Q2 and warned of additional price pressures, with shares down more than 5% midday Wednesday.
• Beef prices rose 1.5% from last month and Brazilian exporters cautioned that selling to the U.S. could become unsustainable under the new duties.