The US government announced an additional 25% tariff on Brazilian products on Wednesday, July 15, effective from July 22. President Luiz Inácio Lula da Silva said Brazil will not waver in defending national sovereignty. The measure is expected to affect 18% of Brazilian exports to the US.
The Brazilian government said it will activate the Reciprocity Law to retaliate against unilateral trade barriers. Ministers announced reinforcement of the Brasil Soberano program with credit lines for affected exporters, though at a lower value than the R$15 billion released earlier.
The Supreme Federal Court stated it will act firmly without yielding to external pressures. STF President Edson Fachin emphasized that divergences between states should be handled through diplomatic channels.
In markets, the Ibovespa fell 1.24% to 173,800 points, while the dollar rose 0.43% to nearly R$5.10. Vice President Geraldo Alckmin called the tariff unjust and unwarranted.
