FX.co ★ Ibovespa Drops After Trump Targets Brazil in Trade War

The Ibovespa index experienced a decline of over 1%, dropping below the 138,000 mark on Wednesday, following direct comments from US President Donald Trump, who singled out Brazil amidst the ongoing trade tensions. The market anticipates the imminent announcement of tariffs on Brazil after Trump remarked, "Brazil, for example, hasn’t been good to us, not good at all." He attributed the potential levies to "very, very substantial facts," though he did not elaborate on these details. In reaction, the Brazilian government called in US chargé d’affaires Gabriel Escobar after Trump publicly expressed support for former President Jair Bolsonaro, who is presently implicated in an attempted coup case. The aircraft manufacturer Embraer saw its shares fall by over 2% due to concerns surrounding large orders from US airlines. Meanwhile, Petrobras, Vale, and CSN also faced declines exceeding 1%, as these companies’ products—oil, fuel, and ferrous metals—represent major Brazilian exports to the US.