FX.co ★ Ibovespa Falls Amid US Tariff Fears

The Ibovespa experienced a decline of over 0.6%, falling below 136,000 on Monday, as investor sentiment turned cautious in light of renewed tariff threats from the United States. President Trump announced over the weekend that a 30% tariff will be imposed on imports from the European Union and Mexico starting August 1, despite ongoing negotiations. Although this action is widely perceived as a negotiation tactic, it has contributed to worldwide uncertainty. In response, the EU has prolonged its suspension of countermeasures until early August, aiming to reach an agreement. Within Brazil, producers are evaluating the effects of a proposed 50% tariff on exports. President Lula commented, "First, we will strive for negotiation, but if it proves unsuccessful, the Law of Reciprocity will be enacted." Lula has also mandated the formation of an interministerial committee to engage with the impacted sectors. Stocks with significant exposure to the U.S. market saw declines, including Embraer (-1.2%), Vale (-0.7%), and CSN (-0.2%). Conversely, Petrobras saw a slight increase of 0.1% due to rising oil prices, and Gerdau rose by 1.4% after Fitch reaffirmed its ratings and stable outlook.