The trade deficit with the United States is still subject to a 50% tariff, causing Brazilian assets to plunge
2025-07-09 22:38:56
On July 10, Trump threatened to impose a 50% tariff on Brazilian goods, causing the Brazilian currency to plummet. The Brazilian real fell nearly 3% against the dollar, while the US-listed iShares MSCI Brazil ETF fell nearly 2% in after-hours trading. Brazil was the first country to receive the letter but has no trade surplus in goods with the US, which is Brazil's second-largest trading partner, and such high tariffs could cause significant damage to some industries in the South American country. "Steel products, transport equipment (mainly aircraft and aircraft parts), specialist machinery (such as civil engineering equipment) and non-metallic minerals account for a significant portion of Brazil's exports to the US," said Felipe Arslan, chief executive of Morada Capital. After the news broke, aircraft manufacturer Embraer's U.S. ADR plunged 9% in after-hours trading.
Disclaimer:
1. The information provided does not constitute investment advice. Investors should make independent decisions and bear all risks themselves.
2. The copyright of this content belongs to the original author. The views expressed herein are solely those of the author and do not represent the stance or position of this website.
