Brazil, Trump and tariff
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President Donald Trump's threat to boost import taxes by 50% on Brazilian goods stands to raise the cost of Brazilian exports, with coffee and orange juice among several key products that may see price increases if no trade agreement is reached by Aug.
Brazilian assets face pressure from new US tariffs, but holding broad index trackers may reduce risk amid volatility. See why major Brazilian ETFs are a hold.
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One of the highest tariffs threatened by President Trump so far is against Brazil, with the president citing a criminal prosecution against Jair Bolsonaro.
The president signaled he would seek to use the threat of steep levies to reorient trade and protect his political allies.
President Donald Trump’s threat to boost import taxes by 50% on Brazilian goods could drive up the cost of breakfast in the United States. The prices of coffee and orange juice — two staples of the American morning diet — could be severely impacted if there’s no agreement by Aug.
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Money managers from Aberdeen Group Plc to Franklin Templeton are staying bullish on Brazil, betting the country will withstand its unexpected turn in the epicenter of Donald Trump’s trade war.
Economists have been expressing alarm over U.S. President Donald Trump’s plan to hit Brazil with a 50% tariff on Aug. 1 — the largest country-specific levy out of the 22 that Trump has rolled out this week.
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Andrew Charles, TD Cowen analyst, joins CNBC's 'Squawk on the Street' to discuss what potential tariffs on Brazil could mean for Starbucks, whether coffee price increases matter to consumers, and more.