Trump threatens to impose 50% tariff on Brazil

At present’s agenda: Moët Hennessy’s sexual harassment case; US Federal Reserve independence; Madrid political disaster; and summer season e-book picks

Good morning. Donald Trump has threatened to hit Brazil with tariffs of fifty per cent and accused it of attacking free speech and treating former president Jair Bolsonaro unfairly, in a major escalation of tensions between the US and Latin America’s largest financial system.

What occurred: In a letter posted to Fact Social yesterday, Trump mentioned that the trial of Bolsonaro over an alleged coup plot was a “Witch Hunt that ought to finish IMMEDIATELY!” He added that the tariff, to be efficient from August 1, can be utilized partly due to Brazil’s “insidious assaults on Free Elections, and the basic Free Speech Rights of Individuals”. He additionally accused Brazil’s Supreme Courtroom of issuing “lots of of SECRET and UNLAWFUL Censorship Orders” in opposition to US social media platforms.

Brazil’s response: President Luiz Inácio Lula da Silva signalled his nation was prepared to reply utilizing a regulation that permits Brasília to retaliate in opposition to commerce limitations imposed on its exports. Brazil’s vice-president and commerce minister Geraldo Alckmin mentioned his nation didn’t pose an issue for the US, including that “the US does have a commerce deficit, but it surely has a surplus with Brazil”. The actual dropped 2.3 per cent in opposition to the US greenback whereas Bovespa share index futures have been down 1.4 per cent.

What this implies: The letter to Brazil comes as a part of a broader barrage in opposition to 22 international locations in current days because the American president ratcheted up strain on buying and selling companions to strike offers or face levies. He additionally confirmed {that a} 50 per cent levy on copper would take impact on August 1. Mining entrepreneur Robert Friedland, the billionaire founding father of Canada’s Ivanhoe Mines, welcomed the copper tariffs, hailing them as “apparent and clever” and arguing that home manufacturing of the steel was “elementary to America’s nationwide safety”.

Learn the complete story on Trump’s latest trade war salvo.

Right here’s what else we’re retaining tabs on right now:

• Jamie Dimon: JPMorgan Chase’s chief government will give a speech and participate in a Q&A on the Irish overseas ministry in Dublin.

• Pharma lawsuit: London’s Courtroom of Attraction hears the subsequent spherical in Pfizer and Moderna’s Covid-19 vaccine authorized battle.

• Financial knowledge: Germany releases client worth index and harmonised index of client costs inflation fee figures.

• Outcomes: Delta Air Traces, Severn Trent and Tata Consultancy Providers are reporting earnings. Learn the Week Ahead e-newsletter for the complete checklist.

5 extra high tales

1. Unique: Moët Hennessy is going through accusations of sexual harassment, gender discrimination and unfair dismissal in a lawsuit that individuals who have labored on the enterprise say is symptomatic of wider cultural issues at LVMH’s €6bn drinks division. Adrienne Klasa has more details on the case.

2. US energy suppliers are looking for to impose massive worth will increase on customers amid the energy-intensive necessities of synthetic intelligence knowledge centres. An power advocacy group mentioned utilities sought regulatory approval for 142 per cent increased charges within the first half of 2025, highlighting the query of whether or not surging electrical energy prices might be shared amongst all customers, or charged on to the big industrial prospects driving the new demand.

• Anthropic: Amazon is weighing one other multibillion-dollar investment within the AI mannequin builder to behave as a bulwark to the rival Microsoft-OpenAI tie-up.

• AI fighter jets: Europe is just some years away from being able to deploy uncrewed flights, in accordance with the continent’s Most worthy defence start-up.

3. Grant Thornton’s UK and US companies are vying to take over their German sister agency, in a non-public equity-fuelled race to safe a better share of the accounting agency’s world community. Individuals conversant in the matter mentioned discussions over the German enterprise may very well be replicated in comparable offers, with associates in Spain and India also open to acquisition.

4. Carmakers and shipowners say Trump’s port charges will harm American customers and exporters. The decision to rethink the steep new prices on car-carrying ships — a $14 “per web tonne” price which is because of come into power on October 14 — got here from the World Transport Council and key US firms including Ford and Caterpillar.

5. A catastrophic flood that has killed greater than 100 individuals in Texas has amplified issues that international locations are ill-prepared to warn residents of impending risks, at the same time as local weather change makes excessive climate occasions extra frequent and intense. “It’s significantly stunning and regarding that the flood was so lethal in a spot that knows they are at risk of flash floods,” mentioned a senior adviser on the Purple Cross Purple Crescent Local weather Centre. 

Can Europe’s pharmaceutical firms unlock the complete potential of real-world proof, significantly in oncology? Sign up here to hitch trade leaders and regulators at a free on-line occasion right now.

The Massive Learn

The US president has stepped up his criticism of Federal Reserve chair Jay Powell, prompting some to query how lengthy the central financial institution can remain above politics.

​​We’re additionally studying and listening to . . . 

Chart of the day 

Dutch pension funds are set to place strain on European authorities debt markets this 12 months with the sale of around €125bn of long-dated bonds. It’s the newest instance of declining demand for long-term debt, which has helped push up yields and elevated strains on policymakers as Europe will increase borrowing to fund its defence and power ambitions.

Take a break from the information

Be part of the FT’s books editors Frederick Studemann and Maria Crawford right now for a virtual Q&A that will help you discover the proper summer season books. Leave a comment below the story, telling Fred and Maria briefly about what you prefer to learn. They may mine practically 30 classes of fiction and non-fiction to carry you a advice.