Trump's Tariff Twist: Targeting Brazil Amidst Political Turmoil
President Donald Trump imposed a 50% tariff on most Brazilian goods, excluding sectors like aircraft and energy. The move is linked to the trial of former Brazilian President Bolsonaro. The announcement followed rising tensions between Trump and Brazilian leader Lula da Silva. Embraer and Suzano stocks responded positively to exemptions.
In a bold move, President Donald Trump has announced the imposition of a hefty 50% tariff on a significant range of Brazilian goods. This decision coincides with heightened tensions surrounding the trial of former President Jair Bolsonaro, which Trump describes as a "witch hunt." Notably, crucial sectors like aircraft, energy, and orange juice were spared from the harsher trade levies.
Political motivations appear to be at the heart of these tariffs. U.S. sanctions were also announced against Alexandre de Moraes, the Brazilian Supreme Court justice overseeing Bolsonaro's trial. Trump allies claim Moraes's actions are tantamount to censorship and human rights violations. As a relief, Brazilian exports such as civil aircraft and wood pulp were granted exemptions from the tariff.
Brazil's response has been a mix of relief and concern. Shares of major companies like Embraer surged after partial exemptions were announced, yet caution remains. Brazilian leaders continue to negotiate, hoping to mitigate broader impacts that could significantly affect essential exports like beef and coffee.
(With inputs from agencies.)
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