• Trump announces 50% tariff on Brazilian imports, effective August 1, citing unfair trade and political tensions over Bolsonaro.
• FOMC minutes released earlier showed most Fed officials support rate cuts in 2025, with some open to easing as soon as July 30.
• Bitcoin pulled back to $110,800 after hitting a new all-time high of $112,000, as markets react to renewed global trade uncertainty.

US President Donald Trump has announced a 50% tariff on Brazilian imports, escalating tensions after a week of diplomatic strain. The new tariff will take effect on August 1.

The announcement came through Trump’s social media channels in a formal letter addressed to Brazilian President Luiz Inácio Lula da Silva.

In the letter, Trump cited “unfair trade practices” by Brazil and criticized the Brazilian Supreme Court’s handling of former President Jair Bolsonaro. He currently faces trial for inciting an anti-democratic coup attempt. 

That event led to the January 8, 2025, storming of the Planalto presidential palace in Brasília.

Tensions between the two countries intensified earlier this week after Trump posted messages supporting Bolsonaro and criticizing the BRICS summit.

He warned that any country aligned with what he called “anti-American BRICS policies” would face an additional 10% tariff.

The move comes amid already heightened market sensitivity following today’s release of FOMC minutes. It showed most Federal Reserve officials favor rate cuts in 2025, with some open to easing as early as July 30.

Shortly after the Brazil tariff news broke, Bitcoin pulled back from its new all-time high of $112,000, dipping to around $110,800.

The crypto market, which had been buoyed by Fed rate cut optimism, showed signs of caution as global trade tensions resurfaced.

This is a developing story.