FirstFT: Trump threatens to impose 50% tariff on Brazil

Immediately’s agenda: Moët Hennessy’s sexual harassment case; US Federal Reserve independence; Madrid political disaster; and summer time 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 economic system.

What occurred: In a letter posted to Reality Social yesterday, Trump mentioned that the trial of Bolsonaro over an alleged coup plot was a “Witch Hunt that should end IMMEDIATELY!” He added that the tariff, to be efficient from August 1, could be utilized partly due to Brazil’s “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans”. He additionally accused Brazil’s Supreme Courtroom of issuing “hundreds of SECRET and UNLAWFUL Censorship Orders” towards 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 towards 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 trade deficit, but it has a surplus with Brazil”. The true dropped 2.3 per cent towards 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 towards 22 international locations 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 “obvious and intelligent” and arguing that home manufacturing of the steel was “fundamental to America’s national security”.

Learn the total story on Trump’s newest commerce warfare salvo.

Right here’s what else we’re maintaining 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 following spherical in Pfizer and Moderna’s Covid-19 vaccine authorized battle.

• Financial knowledge: Germany releases shopper worth index and harmonised index of shopper costs inflation price figures.

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

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 extra particulars on the case.

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

• Anthropic: Amazon is weighing one other multibillion-dollar funding 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 in a position to deploy uncrewed flights, in accordance with the continent’s most respected 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 accustomed to the matter mentioned discussions over the German enterprise might be replicated in comparable offers, with associates in Spain and India additionally 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 expenses on car-carrying ships — a $14 “per net tonne” price which is because of come into pressure on October 14 — got here from the World Delivery Council and key US corporations together with 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, whilst local weather change makes excessive climate occasions extra frequent and intense. “It is particularly shocking and concerning that the flood was so deadly in a place that knows they are at risk of flash floods,” mentioned a senior adviser on the Pink Cross Pink Crescent Local weather Centre. 

Can Europe’s pharmaceutical corporations unlock the total potential of real-world proof, notably in oncology? Enroll right here to hitch business 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 stay 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 12 months with the sale of round €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 part of the FT’s books editors Frederick Studemann and Maria Crawford right now for a digital Q&A that can assist you discover the proper summer time books. Depart a remark beneath the story, telling Fred and Maria briefly about what you wish to learn. They are going to mine practically 30 classes of fiction and non-fiction to deliver you a suggestion.