A US trade probe suddenly ordered by President Donald Trump on Brazil sent shockwaves through President Luiz Inacio da Silva’s government, according to a senior Brazilian diplomat who described it as an unwarranted threat that has helped to plunge relations to their lowest point in over a century.

The twice-postponed deadline for levies to take effect is now Aug 1. Read more at straitstimes.com. Read more at straitstimes.com.

Brazilian President Luiz Inácio Lula da Silva has hit back at Donald Trump’s tariff threats, saying that his American counterpart was elected as the leader of the United States and “not to be the emperor of the world.

Brazil's economic growth will stay on track despite the imposition of U.S. tariffs, according to a Reuters poll of economists, but inflation appears at greater risk of worsening if trade negotiations flounder.

A favorable outcome for Brazil would involve capping tariffs at 10-15%, according to de Aragão. Achieving this, however, could necessitate costly concessions from Lula for the domestic economy, though such moves might allow him to demonstrate that he defended sovereignty.

President Claudia Sheinbaum spoke to her Brazilian counterpart, President Luiz Inácio Lula da Silva (Lula), on Wednesday ahead of a visit to Mexico by a Brazilian government and business delegation next month.

Some of Brazil’s pig iron producers are looking at halting operations as tariff tensions shrink demand from customers in the US, the top buyers of cargoes from the South American nation.

US President Donald Trump announced on Wednesday that new trade duties will have a minimum rate of 15%, with the possibility of reaching 50%, and suggested that Brazil will be the only country subjected to the maximum rate among those that received letters in the past few weeks.