Trump launches investigation into Brazilian digital trade practices in on-going battle with Brazil over the dollar's hegemony

Trump last week threatened to hit Brazil with a 50% tariff starting on August 1, citing its treatment of Bolsonaro, the country’s former president. The threat came amid a stream of tariff demand letters the US president has been sending other economies setting new import taxes for next month after a three-month negotiating period.

In first half of 2025, exports reach US$6.7 million, which analysts view as sign of China’s bid to diversify access to strategic minerals.

The fight is rooted in years of political history between President Trump and the last two presidents of Brazil.

Nobel Prize-winning economist Paul Krugman believes tariffs President Trump has threatened to impose on countries, including Mexico and Brazil, are here to stay and will cost U.S. consumers.

Money managers from Aberdeen Group Plc to Franklin Templeton are staying bullish on Brazil, betting the country will withstand its unexpected turn in the epicenter of Donald Trump’s trade war. One reason: The fairly closed Brazilian economy,

Facing growing chaos, the European Union and numerous other countries are seeking to forge a global trading nexus that is less vulnerable to American tariffs.

Indonesia also has agreed to purchase billions in U.S. energy, agriculture products and airplanes, Trump said July 15 in a social media post.