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illuminem summarises for you the essential news of the day. Read the full piece on CNN or enjoy below:
🗞️ Driving the news: US President Donald Trump has threatened to impose a 50% tariff on Brazilian imports starting August 1, unless President Lula da Silva halts the ongoing trial of former president Jair Bolsonaro
• Trump called the proceedings a “witch hunt,” warning Brazil in a formal letter that retaliation would follow if the trial continues
• Lula responded firmly, pledging reciprocal measures under Brazil’s economic laws
🔭 The context: This move extends Trump’s aggressive tariff policy, which has already targeted 21 other nations over trade deficits and policies he claims disadvantage US goods
• Bolsonaro, who faces trial for allegedly plotting to overturn Brazil’s 2022 elections, has been a close ally of Trump
• Unlike other targeted countries, Brazil runs a trade deficit with the US — importing more American goods than it exports — raising the stakes for key US industries such as aerospace, machinery, and fuels
🌍 Why it matters for the planet: The tariff threats risk undermining US–Brazil cooperation on key sustainability and trade initiatives, including climate and biodiversity accords critical to the Amazon
• Economic retaliation could disrupt supply chains, complicating efforts to green industrial sectors and affecting the cost and flow of low-carbon technologies and commodities
• Trade tensions also strain multilateral efforts to align economic and environmental goals
⏭️ What's next: Negotiations are expected to intensify ahead of the August 1 deadline
• Brazil may seek to mobilize diplomatic support through the WTO or regional trade blocs, while US industries likely to be hit by retaliation could pressure Washington to soften its stance
• The announced 50% copper tariff — framed as a national security measure — signals further protectionist measures that could raise costs for renewable energy, infrastructure, and defense sectors
• Markets will watch for whether threatened tariffs are enacted or resolved through last-minute deals
💬 One quote: “Brazil is a sovereign nation with independent institutions and will not accept any form of tutelage,” — President Lula da Silva, reaffirming the country’s autonomy
📈 One stat: Brazil ran a $6.8 billion trade deficit with the US in 2024, with top US exports including aircraft, fuels, and electrical equipment
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