Trump threatens to impose 50% tariff on Brazil

As we speak’s agenda: Moët Hennessy’s sexual harassment case; US Federal Reserve independence; Madrid political disaster; and summer season guide 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 big 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, could be utilized partly due to Brazil’s “insidious assaults on Free Elections, and the elemental Free Speech Rights of People”. He additionally accused Brazil’s Supreme Courtroom of issuing “tons 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 allows Brasília to retaliate in opposition to commerce boundaries 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, nevertheless it has a surplus with Brazil”. The true 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 nations in latest days because the American president ratcheted up stress 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 “basic to America’s nationwide safety”.

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

Right here’s what else we’re protecting tabs on immediately:

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

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

• Financial knowledge: Germany releases client value index and harmonised index of client costs inflation price figures.

• Outcomes: Delta Air Traces, Severn Trent and Tata Consultancy Companies are reporting earnings. Learn the Week Ahead publication for the total listing.

5 extra prime tales

1. Unique: Moët Hennessy is dealing with 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 in search of to impose huge value will increase on shoppers amid the energy-intensive necessities of synthetic intelligence knowledge centres. An vitality advocacy group mentioned utilities sought regulatory approval for 142 per cent greater 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 clients 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 only a few years away from being able to deploy uncrewed flights, in keeping with the continent’s most beneficial defence start-up.

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

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

5. A catastrophic flood that has killed greater than 100 individuals in Texas has amplified considerations that nations 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 notably surprising 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 corporations unlock the total potential of real-world proof, notably in oncology? Sign up here to affix trade leaders and regulators at a free on-line occasion immediately.

The Large 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 stress on European authorities debt markets this yr 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 vitality ambitions.

Take a break from the information

Be a part of the FT’s books editors Frederick Studemann and Maria Crawford immediately for a virtual Q&A that can assist you discover the proper summer season books. Leave a comment below the story, telling Fred and Maria briefly about what you wish to learn. They are going to mine almost 30 classes of fiction and non-fiction to deliver you a suggestion.